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Prat corp. started the 2018 accounting period with $30,000 of assets (all cash), $12,000 of liabilities, and $13,000 of common stock. during the year, the retained earnings account increased by $7,550. the bookkeeper reported that prat paid cash expenses of $26,000 and paid a $2,000 cash dividend to the stockholders, but she could not find a record of the amount of cash that prat received for performing services. prat also paid $3,000 cash to reduce the liability owed to the bank, and the business acquired $4,000 of additional cash from the issue of common stock.(hint: determine the amount of beginning retained earnings before considering the effects of the current period events. it also might to record all events under an accounting equation before preparing the statements.)a-1. prepare an income statement for the 2018 accounting period. a-2. prepare a statement of changes in stockholdersâ equity for the 2018 accounting period. a-3. prepare a period-end balance sheet for the 2018 accounting period. a-4. prepare a statement of cash flows for the 2018 accounting period.
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