Income statement-statement of changes instockholder equity

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O'Shea Enterprises started the 2002 accounting period with $30,000of assets (all cash), $18,000 of liabilities, and $4,000 of commonstock. during the year, O'shea earned cash revenues of $48,000,paid cash expenses of $32,000. and paid a cash dividend tostockholder's of $2,000. O'shea also acquired $10,000 of additionalcash from the sale of common stock and paid $6,000 cash to reducethe liability owed to a bank.

Required

a. Prepare an income statement, statement of changes instockholder's equity, period-end balance sheet, and statement ofcash flows for the 2002 accounting period. (Hint: Determine theamount of beginning retained earnings before considering theeffects of the current period events. It also might help to recordall events under an accounting equation before preparing thestatements.)

Check figures

a. Net Income $16,000

b. Total Assets $48,000

Reference no: EM13256406

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