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Prat Corporation started the Year 2 accounting period with $34,000 of assets (all cash). $14,000 of liabilities, and $9,000 of common stock. During the year, the Retained Earnings account increased by $11,550. The bookkeeper reported that Prat paid cash expenses of $28,000 and paid a $2.400 cash dividend to the stockholders, but she could not find a record of the amount of cash that Prat received for performing services. Prat also paid $7,000 cash to reduce the liability owed to the bank, and the business acquired $7.700 of additional cash from the issue of common stock. Required: a-1. Prepare an income statement for the Year 2 accounting period. a-2. Prepare a statement of changes in stockholders' equity for the Year 2 accounting period. a-3. Prepare a period-end balance sheet for the Year 2 accounting period. a-4. Prepare a statement of cash flows for the Year 2 accounting period. (Hint Determine the amount of beginning retained earnings before considering the effects of the current period events. It also might help to record all events under an accounting equation before preparing the statements) b. Determine the percentage of total assets that were provided by creditors, Investors, and earnings c. Determine the balance in the revenue, expense, and dividends accounts as of January 1, Year 3. Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Req A3 Prepare a statement of cash flows for the Year 2 accounting period. Note: Cash outflows should be indicated with a minus sign. Prat Corporation Statement of Cash Flows For the Year Ended December 31, Year 21 Cash flows from operating activities Cash receipts from revenue Cash payments for expenses Net cash flow from operating activities Cash flows from investing activities Req A4 Net cash flow from investing activities Cash flows from financing activities Cash receipts from stock issue Cash payments to creditors Cash dividend to stockholders i Net cash flow from financing activities Net increase in cash Plus Beginning cash balance 0 0 0 Raq B S 0 0 Reg C

Prat Corporation started the Year 2 accounting period with $34,000 of assets (all cash). $14,000 of liabilities, and $9,000 of common stock. During the year, the Retained Earnings account increased by $11,550. The bookkeeper reported that Prat paid cash expenses of $28,000 and paid a $2.400 cash dividend to the stockholders, but she could not find a record of the amount of cash that Prat received for performing services. Prat also paid $7,000 cash to reduce the liability owed to the bank, and the business acquired $7.700 of additional cash from the issue of common stock. Required: a-1. Prepare an income statement for the Year 2 accounting period. a-2. Prepare a statement of changes in stockholders' equity for the Year 2 accounting period. a-3. Prepare a period-end balance sheet for the Year 2 accounting period. a-4. Prepare a statement of cash flows for the Year 2 accounting period. (Hint Determine the amount of beginning retained earnings before considering the effects of the current period events. It also might help to record all events under an accounting equation before preparing the statements) b. Determine the percentage of total assets that were provided by creditors, Investors, and earnings c. Determine the balance in the revenue, expense, and dividends accounts as of January 1, Year 3. Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Req A3 Prepare a statement of cash flows for the Year 2 accounting period. Note: Cash outflows should be indicated with a minus sign. Prat Corporation Statement of Cash Flows For the Year Ended December 31, Year 21 Cash flows from operating activities Cash receipts from revenue Cash payments for expenses Net cash flow from operating activities Cash flows from investing activities Req A4 Net cash flow from investing activities Cash flows from financing activities Cash receipts from stock issue Cash payments to creditors Cash dividend to stockholders i Net cash flow from financing activities Net increase in cash Plus Beginning cash balance 0 0 0 Raq B S 0 0 Reg C

Financial Reporting, Financial Statement Analysis and Valuation
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter2: Asset And Liability Valuation And Income Recognition
Section: Chapter Questions
Problem 20PC: Analyzing Transactions. Using the analytical framework, indicate the effect of the following related...
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Prat Corporation started the Year 2 accounting period with $34,000 of assets (all cash), $14,000 of liabilities, and $9,000 of common stock. During the year, the Retained Earnings account increased by $11,550. The bookkeeper reported that Prat paid cash expenses of $28,000 and paid a $2.400 cash dividend to the stockholders, but she could not find a record of the amount of cash that Prat received for performing services. Prat also paid $7,000 cash to reduce the liability owed to the bank, and the business acquired $7.700 of additional cash from the issue of common stock. Required: a-1. Prepare an Income statement for the Year 2 accounting period. a-2. Prepare a statement of changes in stockholders' equity for the Year 2 accounting period. a-3. Prepare a period-end balance sheet for the Year 2 accounting period. a-4. Prepare a statement of cash flows for the Year 2 accounting period (Hint Determine the amount of beginning retained earnings before considering the effects of the current period events. It also might help to record all events under an accounting equation before preparing the statements) b. Determine the percentage of total assets that were provided by creditors, Investors, and earnings c. Determine the balance in the revenue, expense, and dividends accounts as of January 1, Year 3. Complete this question by entering your answers in the tabs below. Req A1 Req A2 Prat Corporation Statement of Cash Flows Prepare a statement of cash flows for the Year 2 accounting period. Note: Cash outflows should be indicated with a minus sign. Cash flows from operating activities Cash receipts from revenue Cash payments for expenses Req A3 For the Year Ended December 31, Year 2 Net cash flow from operating activities Cash flows from investing activities Net cash flow from investing activities Cash flows from financing activities: Cash receipts from stock issue Cash payments to creditors i Cash dividend to stockholders Req A4 Net cash flow from financing activities Net increase in cash Plus Beginning cash balance. 0 0 0 Req B S 0 0 0 Reg C
Transcribed Image Text:Prat Corporation started the Year 2 accounting period with $34,000 of assets (all cash), $14,000 of liabilities, and $9,000 of common stock. During the year, the Retained Earnings account increased by $11,550. The bookkeeper reported that Prat paid cash expenses of $28,000 and paid a $2.400 cash dividend to the stockholders, but she could not find a record of the amount of cash that Prat received for performing services. Prat also paid $7,000 cash to reduce the liability owed to the bank, and the business acquired $7.700 of additional cash from the issue of common stock. Required: a-1. Prepare an Income statement for the Year 2 accounting period. a-2. Prepare a statement of changes in stockholders' equity for the Year 2 accounting period. a-3. Prepare a period-end balance sheet for the Year 2 accounting period. a-4. Prepare a statement of cash flows for the Year 2 accounting period (Hint Determine the amount of beginning retained earnings before considering the effects of the current period events. It also might help to record all events under an accounting equation before preparing the statements) b. Determine the percentage of total assets that were provided by creditors, Investors, and earnings c. Determine the balance in the revenue, expense, and dividends accounts as of January 1, Year 3. Complete this question by entering your answers in the tabs below. Req A1 Req A2 Prat Corporation Statement of Cash Flows Prepare a statement of cash flows for the Year 2 accounting period. Note: Cash outflows should be indicated with a minus sign. Cash flows from operating activities Cash receipts from revenue Cash payments for expenses Req A3 For the Year Ended December 31, Year 2 Net cash flow from operating activities Cash flows from investing activities Net cash flow from investing activities Cash flows from financing activities: Cash receipts from stock issue Cash payments to creditors i Cash dividend to stockholders Req A4 Net cash flow from financing activities Net increase in cash Plus Beginning cash balance. 0 0 0 Req B S 0 0 0 Reg C
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