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14 December, 22:53

Astro Corporation was started with the issue of 5,100 shares of $10 par stock for cash on January 1, 2018. The stock was issued at a market price of $15 per share. During 2018, the company earned $66,100 in cash revenues and paid $44,287 for cash expenses. Also, a $3,700 cash dividend was paid to the stockholders.

Prepare an income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Astro Corporation's 2018 fiscal year.

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  1. 14 December, 23:21
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    Income statement

    Revenue $66,100

    Less Expenses ($44,287)

    Net Income / (Loss) $21,813

    statement of changes in stockholders' equity

    Equity and Liabilities Section:

    Equity:

    Share Capital 5,100 shares at $10 $51,000

    Share Premium 5,100 shares at $5 $25,500

    Profit during the year $21,813

    Dividends Paid ($3,700)

    Total Equity $94,613

    balance sheet

    Assets

    Current Assets:

    Cash ($66,100 + $51,000 + $25,500 - $44,287 - $3,700) $94,613

    Total Assets $94,613

    Equity and Liabilities Section:

    Equity:

    Share Capital 5,100 shares at $10 $51,000

    Share Premium 5,100 shares at $5 $25,500

    Profit during the year $21,813

    Dividends Paid ($3,700)

    Total Equity $94,613

    Explanation:

    The Income Statement is prepared first, following the Statement of Changes in Equity then follows the balance sheet and the cash flow statement.
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