Raleigh Corporation began operations on February 10, 2015. During 2015, the company entered into the following transactions:
1. Issued $110,000 of common stock and $25,000 of preferred stock.
2. Performed services for $580,000.
3. Issued $475,000 in long-term debt for cash.
4. Incurred expenses: $125,000 for wages, $35,000 for supplies, $80,000 for depreciation, and $75,000 for miscellaneous expenses.
5. Purchased fixed assets for $250,000 cash.
6. Declared, but did not pay, cash dividends of $10,000.
7. Purchased fixed assets in exchange for a long-term note valued at $85,000.

a. Classify each transaction as either operating, investing, or financing.
b. Prepare an income statement.
c. Compute comprehensive income and compare it to the income reported on the income statement. Discuss.

  • CreatedAugust 19, 2014
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