The following transactions apply to the Garber Corporation for Year 1, its first year in business.
1)Issued stock to investors, $48,000.
2)The company borrowed $42,000 cash from the bank.
3)Services were provided to customers and $50,000 cash was received.
4)The company acquired land for $44,000.
5)The company paid $34,000 rent for the building where it does its business.
6)The company paid $3,200 for supplies that were used during the period.
7)The company sold the land acquired in item 5 for $44,000.
8)A dividend of $1,000 was paid to the owners.
9)Repaid $20,000 of the loan described in item 2.
Required:
a)Prepare an income statement, statement of changes in equity, and balance sheet for Year 1.
b)Prepare a statement of cash flows for Year 1.

Question

Quizplus · Accepted Answer

The Answer of The following transactions apply to the Garber Corporation for Year 1, its first year in business.
1)Issued stock to investors, $48,000.
2)The company borrowed $42,000 cash from the bank.
3)Services were provided to customers and $50,000 cash was received.
4)The company acquired land for $44,000.
5)The company paid $34,000 rent for the building where it does its business.
6)The company paid $3,200 for supplies that were used during the period.
7)The company sold the land acquired in item 5 for $44,000.
8)A dividend of $1,000 was paid to the owners.
9)Repaid $20,000 of the loan described in item 2.
Required:
a)Prepare an income statement, statement of changes in equity, and balance sheet for Year 1.
b)Prepare a statement of cash flows for Year 1.

The Following Transactions Apply to the Garber Corporation for Year