Prat Corp 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 $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. 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 b) determine the percentage of total assets that were provided by creditors, investors, and earnings c) determine the balance in revenue, expense, and dividends accounts as of January 1, Year 3

Prat Corp 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 $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. 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 b) determine the percentage of total assets that were provided by creditors, investors, and earnings c) determine the balance in revenue, expense, and dividends accounts as of January 1, Year 3

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter3: Review Of A Company's Accounting System

Section: Chapter Questions

Problem 9RE: For the current year, Vidalia Company reported revenues of 250,000 and expenses of 225,000. At the...

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For the current year, Vidalia Company reported revenues of 250,000 and expenses of 225,000. At the beginning of the year, its retained earnings had a balance of 95,000. During the year, Vidalia paid 11,000 dividends to shareholders. Its contributed capital was 56,000 at the beginning of the year, and it did not issue any new stock during the year. Vidalias assets total 237,500 on December 31 of the current year. What are Vidalias total liabilities on December 31 of the current year?
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