Question

Astro Corporation was started with the issue of 4,800 shares of $9 par stock for cash on January 1, 2018. The stock was issued at a market price of $17 per share. During 2018, the company earned $72,550 in cash revenues and paid $48,609 for cash expenses. Also, a $3,400 cash dividend was paid to the stockholders. Required: Prepare an income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Astro Corporation's 2018 fiscal year.

Answer 1

Answer:

Astro Corporation

1. Income Statement for the year ended December 31, 2018

Revenue     $72,550

Expenses     (48,609)

Net income   $23,941

Dividend           3,400

Retained E.  $20,541

2. Statement of Changes in Stockholders' Equity as of December 31, 2018

Common Stock                 $43,200

Additional Paid-in Capital   38,400

Retained earnings              20,541

Equity                                $102,141

3. Balance Sheet as of December 31, 2018

Assets:

Cash                   $102,141

Equity                 $102,141

4. Statement of Cash Flows for the year ended December 31, 2018

Operating Activities:

Net income            $23,941

Investing Activities:

Financing Activities:

Issue of shares    $81,600

Dividends               (3,400)

Net cash             $78,200

Net Cash Flows $102,141

Explanation:

a) Data and Analysis:

January 1, 2018: Cash $81,600 Common Stock $43,200 Additional Paid-in Capital $38,400

Cash $72,550 Revenue $72,550

Expenses $48,609 Cash $48,609

Dividend $3,400 Cash $3,400