O'Shea Enterprises started the 2002 accounting period with$30,000 of assets (all cash), $18,000 of liabilities, and $4,000 ofcomon stock. During the year, O'Shea earned cah revenues of448,000, paid cash expenses of $32,000 and paid a cash dividend tostockholders of $2,000. O'Shea also acquired $10,000 of additionalcash from the sale of common stock and paid $6,000 cash to reducethe liability owed to a bank.
CHECK FIGURES
a. Net income: $16,000
b. Total Assets: $48,000
Answer the following:
Prepare an income statement, statement of changes instockholder equity, period-end balance sheet, and statement of cashflows for the 2002 accoutning period. ( Hint: Determine the amountof beginning retained earnings before considering the effects ofthe current period events. It also might help to recordall eventsunder an accoutning equation before preparing thestatements.)