Tracy Corporation reported the following cash transactions for the year ending December 31,2012,its first year in operation:
1.issued common stock for $60,000 cash
2.borrowed $10,000 cash from a local bank
3.purchased land for $40,000
4.provided services to clients for $70,000 cash
5.paid operating expenses of $62,000
6.paid $3,000 cash dividends to stockholders
Required:
a)What are the total assets for Tracy Corporation at December 31,2012?
b)What is the total equity for Tracy at December 31,2012?
c)Prepare an income statement for 2012.

Question

Quizplus · Accepted Answer

The Answer of Tracy Corporation reported the following cash transactions for the year ending December 31,2012,its first year in operation:
1.issued common stock for $60,000 cash
2.borrowed $10,000 cash from a local bank
3.purchased land for $40,000
4.provided services to clients for $70,000 cash
5.paid operating expenses of $62,000
6.paid $3,000 cash dividends to stockholders
Required:
a)What are the total assets for Tracy Corporation at December 31,2012?
b)What is the total equity for Tracy at December 31,2012?
c)Prepare an income statement for 2012.

Tracy Corporation Reported the Following Cash Transactions for the Year