5.6 Financial Statement Preparation Points: 18 items @ 2 points = 36 points Directions: Complete the financial statements below based on the information provided below. Background Information: a) Donald Duck and Friends started their company when they issued 3,000 shares of $8 par value stock on January 1,2018 b) The stock issued at a market price of $13 per share c) During the year, Donald Duck and Friends had revenue of $43,000 d) Donald Duck and Friends paid cash for $18,000 in expenses e) Donald Duck and Friends paid a cash Dividend of $25,000 a) Prepare an income statement for 2018 Donald Duck and Friends Income Statement For the Year Ended December 31,2018 Revenue Hint: This is from transaction C Expense Hint: This is from Transaction D Net Income $ 25.000 b) Prepare a year-end balance Sheet Donald Duck and Friends Balance Sheet As of December 31,2018 Assets Cash Hint: This is the sum of sale of stock (Transaction A & B) and also Transactions C-E Total Assets $ 39,000 Liabilities Total Liabilities Stockholders Equity Common Stock Hint: This is from Transaction A