Astro Corporation was started with the issue of 2,000 shares of $5 par stock for cash on

Question:

Astro Corporation was started with the issue of 2,000 shares of $5 par stock for cash on January 1, 2016. The stock was issued at a market price of $12 per share. During 2016, the company earned $31,000 in cash revenues and paid $17,000 for cash expenses. Also, a $2,000 cash dividend was paid to the stockholders.

Required

Prepare an income statement, statement of changes in stockholders’ equity, balance sheet, and statement of cash flows for Astro Corporation’s 2016 fiscal year.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...