The Following Are Relevant Account Balances from Hampton's Comparative Balance

question 31

Essay

The following are relevant account balances from Hampton's comparative balance sheet and 2017 income statement. Hampton's balance sheets:
$$\begin{array}{l}\begin{array} { | l | l | l | } \hline &\text { December } 31,2017 & \text { January } 1,2017 \\\hline\text { Cash } & \$ 6,000 & \$ 9,000 \\\text { Accounts receivable } & 8,000 & 12,000 \\\text { Merchandise irventory } & 29,000 & 18,000 \\\text { Prepaid rent } & 6,000 & 4,000 \\\text { Equipment } & 100,000 & 8000 \\\text { Accumulated depreciation } & ( 28,000 ) & ( 13,000 ) \\\text { Tatal assets } & \$ 121,000 & \$ 110,000 \\& & \\\text { Accounts payable } & \$ , 000 & \$ 25,000 \\\text { Dividends payable } & 6,000 & 4,000 \\\text { Cammon stock } & 38,000 & 32,000 \\\text { Retained earnings } & 68,000 & 49000 \\\text { Total liabilities and shareholders' equity } & \$ 121,000 & \$ 110,000\\\hline\end{array}\end{array}$$
Other information:
No equipment was sold or retired during 2017. Hampton's net income for 2017 was $33,000.
Calculate the cash proceeds from the issuance of common stock during 2017.

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Definitions:

Innocent Misrepresentation

A false statement about a fact material to an agreement that the person who made the statement believed to be true.

Mutual Mistake

The result of an error by both parties about a material fact, that is, one that is important in the context of a particular contract.

Legal Consent

The voluntary agreement from a person with full understanding of the facts and implications to participate in a specific legal act, contract, or activity.

Undue Influence

A situation where an individual is able to persuade another's decisions due to the relationship between them, typically where one party is in a position of power over the other.