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Preparing a Financial Statement

Enterprise A started the 2002 accounting period w/ $30K of assets (all cash), $18K of liabilities, and $4K of common stock. During the year, Enterprise A earned cash revenues of $48K, paid cash expenses of $32K, and paid a cash dividend to stockholders of $2K. Enterprise A also acquired $10K of additional cash from the sale of common stock and paid $6K cash to reduce the liability owed to a bank.

a. how do I prepare an income statement, statement of changes in stockholders' equity, and a cash flow for the accounting period.

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Preparing a Financial Statement
Enterprise A started the 2002 accounting period w/ $30K of assets (all cash), $18K of liabilities, and $4K of common stock.
During the year, Enterprise A earned cash revenues of $48K, paid cash expenses of $32K, and paid a cash dividend to stockholders of $2K. Enterprise A also acquired $10K of additional cash from the sale of common ...

Solution Summary

This solution is comprised of a detailed explanation to prepare a financial statement for Enterprise A.

$2.19