Pratt Corp. started the Year 2 accounting period with total assets of $30,000 cash, $12,000 of liabilities, and $5,000 of retained earnings. During the Year 2 accounting period, the Retained Earnings account increased by $7,550. The bookkeeper reported that Pratt paid cash expenses of $26,000 and paid a $2,000 cash dividend to stockholders, but she could not find a record of the amount of cash revenue that Pratt received for performing services. Pratt also paid $3,000 cash to reduce the liability owed to a bank, and the business acquired $4,000 of additional cash from the issue of common stock. Assume all transactions are cash transactions. Prepare the Year 2 balance sheet. PRATT CORP
Pratt Corp. started the Year 2 accounting period with total assets of $30,000 cash, $12,000 of liabilities, and $5,000 of retained earnings. During the Year 2 accounting period, the Retained Earnings account increased by $7,550. The bookkeeper reported that Pratt paid cash expenses of $26,000 and paid a $2,000 cash dividend to stockholders, but she could not find a record of the amount of cash revenue that Pratt received for performing services. Pratt also paid $3,000 cash to reduce the liability owed to a bank, and the business acquired $4,000 of additional cash from the issue of common stock. Assume all transactions are cash transactions. Prepare the Year 2 balance sheet. PRATT CORP
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please help me fill out this balance sheet . This is the final part of the question and I am very confused on how to do it.
Transcribed Image Text:Pratt Corp. started the Year 2 accounting period with total assets of $30,000 cash, $12,000 of liabilities, and $5,000 of
retained earnings. During the Year 2 accounting period, the Retained Earnings account increased by $7,550. The
bookkeeper reported that Pratt paid cash expenses of $26,000 and paid a $2,000 cash dividend to stockholders, but she
could not find a record of the amount of cash revenue that Pratt received for performing services. Pratt also paid $3,000
cash to reduce the liability owed to a bank, and the business acquired $4,000 of additional cash from the issue of
common stock. Assume all transactions are cash transactions.
c. Prepare the Year 2 balance sheet.
Assets
Total assets
Liabilities
Stockholders' Equity
Total stockholders' equity
Total liabilities and stockholders' equity
PRATT CORP.
Balance Sheet
As of December 31, Year 2
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