On January 1, 2013, the organizers of the Farsa Corporation obtained their charter authorizing 40,000 shares of $1 par common stock. Farsa issued 10,000 shares of $2 par common stock for $16 per share. During 2013, the corporation earned $120,000 in cash revenue and paid $80,000 in cash expenses, not including income tax. The company declared and paid cash dividends totaling $8,000. Farsa Corporation is in the 30% tax bracket. Using the above information, prepare an income statement and a balance sheet for the Farsa Corporation.

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The Answer of On January 1, 2013, the organizers of the Farsa Corporation obtained their charter authorizing 40,000 shares of $1 par common stock. Farsa issued 10,000 shares of $2 par common stock for $16 per share. During 2013, the corporation earned $120,000 in cash revenue and paid $80,000 in cash expenses, not including income tax. The company declared and paid cash dividends totaling $8,000. Farsa Corporation is in the 30% tax bracket. Using the above information, prepare an income statement and a balance sheet for the Farsa Corporation.

On January 1, 2013, the Organizers of the Farsa Corporation