Canton Company was formed in 2013 and experienced the following accounting events during the year:
1. issued common stock for $10,000 cash
2. earned cash revenue of $15,000
3. paid cash expenses of $13,000.
These were the only events that affected the company during the year.
Required:
a) Write the accounting equation and record the effects of each accounting event under the appropriate general ledger account heading.
b) Prepare an income statement for 2013 and a balance sheet as of December 31, 2013.

Question

Quizplus · Accepted Answer

The Answer of Canton Company was formed in 2013 and experienced the following accounting events during the year:
1. issued common stock for $10,000 cash
2. earned cash revenue of $15,000
3. paid cash expenses of $13,000.
These were the only events that affected the company during the year.
Required:
a) Write the accounting equation and record the effects of each accounting event under the appropriate general ledger account heading.
b) Prepare an income statement for 2013 and a balance sheet as of December 31, 2013.

Canton Company Was Formed in 2013 and Experienced the Following