Answer:
Explanation:
Income statement
For the year ended December 31, year 1
Revenue:
Service revenue 45000
Expense:
Utilities expense 1100
Salary expense 8100
Total expense 9200
Net income 35800
Statement of Changes in Stockholders' Equity
For the Year Ended December 31, Year 1
Beginning common stock: -
Common stock issued 13,500
Ending common stock 13,500
Beginning retained earnings -
Net income 35,800
Dividends (1100)
Ending retained earnings 34,700
Total stockholders' equity 48,200
Balance Sheet
As of December 31, Year 1
Assets
Cash(13500+35270-1100-1100) 46,570
Accounts receivable(45000-35270) 9730
Total assets 56,300
Liabilities
Salaries payable 8100
Total liabilities 8100
Stockholders' Equity
Common stock 13,500
Retained earnings 34,700
Total stockholders' equity 48,200
Total liabilities and stockholders' equity 56,300
Statement of Cash Flows
For the Year Ended December 31, Year 1
Cash flow from operating activities
Cash received from customers 35,270
Cash paid for utility expense (1,100)
Net cash flow from operating activities 34,170
Cash flow from investing activities -
Cash flow from financing activities
Issuance of common stock 13,500
Cash paid for dividends (1100)
Net cash flow from financing 12,500
Net change in cash 46,670
Beginning cash balance -
Ending cash balance 46,670
