Morris Corporation was started with the issue of 5,000 shares of $10 par common stock for cash

Question:

Morris Corporation was started with the issue of 5,000 shares of $10 par common stock for cash on January 1, 2012. The stock was issued at a market price of $18 per share. During 2012, the company earned $63,000 in cash revenues and paid $41,000 for cash expenses. Also, a $4,000 cash dividend was paid to the stockholders.

Required

Prepare the income statement, statement of changes in stockholders’ equity, balance sheet, and statement of cash flows for Morris Corporation’s 2012 fiscal year.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... 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...