Pinehurst Company was formed in 2015 and experienced the following accounting events during the year:
1.Issued common stock for $15,000 cash
2.Earned cash revenue of $28,000
3.Paid cash expenses of $20,500.
These were the only events that affected the company during the year.
Required:
a)Write the accounting equation and record the effects of each accounting event under the appropriate general ledger account heading.Precede the amount with a minus sign if the transaction reduces that section of the equation.
Enter 0 for items not affected.
b)Prepare an income statement for 2015 and a balance sheet as of December 31,2015.Precede the amount with a minus sign if the transaction reduces that section of the income statement.

Question

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The Answer of Pinehurst Company was formed in 2015 and experienced the following accounting events during the year:
1.Issued common stock for $15,000 cash
2.Earned cash revenue of $28,000
3.Paid cash expenses of $20,500.
These were the only events that affected the company during the year.
Required:
a)Write the accounting equation and record the effects of each accounting event under the appropriate general ledger account heading.Precede the amount with a minus sign if the transaction reduces that section of the equation.
Enter 0 for items not affected.
b)Prepare an income statement for 2015 and a balance sheet as of December 31,2015.Precede the amount with a minus sign if the transaction reduces that section of the income statement.

Pinehurst Company Was Formed in 2015 and Experienced the Following