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# Prepare Financial Statements for O'Shea Enterprises

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O'Shea Enterprises started the 2002 accounting period with \$30,000 of assets (all cash), \$18,000 of liabilities, and \$4,000 of common stock. During the year, O'Shea earned cash revenues of \$48,000, paid cash expenses of \$32,000, and paid a cash dividend to stockholders of \$2,000. O'Shea also acquired \$10,000 of additional cash from the sale of common stock and paid \$6,000 cash to reduce the liability owed to a bank.

REQUIRED:

a) Prepare an income statement, statement of changes in stockholders' equity, period-end balance sheet, and statement of cash flows for the 2002 accounting period.
b) Determine the percentage of total assets that were provided by creditors, investors, and earnings.

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For your convenience, I have attached a formatted MS Excel spreadsheet containing the information below. Feel free to contact me in the future, in the event that additional assistance is required.

O'Shea Enterprises started the 2002 accounting period with \$30,000 of assets (all cash), \$18,000 of liabilities, and \$4,000 of common stock.
During the year, O'Shea earned cash revenues of \$48,000, paid cash expenses of \$32,000, and paid a cash dividend to stockholders of \$2,000.
O'Shea also acquired \$10,000 of additional cash from the sale of common stock and paid \$6,000 cash to reduce the liability owed to a bank.

Cash (Assets) Notes Payable (Liabilities) Sales Revenue
(Beg.) 30,000 (Beg.) 18,000 1) 48,000
1) 48,000 2) 32000 5) 6,000 (Bal.) 48,000
3) 2,000 (Bal.) 12,000
4) 10,000 5) 6,000
(Bal.) 48,000

Common ...

#### Solution Summary

Excel sheet attached prepares an income statement and determines the total percent of assets provided.

\$2.19