Thiessen Company Started Its Business by Issuing $7,000 of Common

question 54

Essay

Thiessen Company started its business by issuing $7,000 of common stock on January 1, 2013. The company performed $18,000 of service for customers on account in 2013. It collected $12,500 of this amount in 2013, recorded expenses on account of $14,500, paid $11,000 of the payables owed, and paid a $300 dividend to the stockholders.
Required:
a) What is the amount of total assets at the end of 2013?
b) What is the amount of cash on hand at the end of 2013?
c) What is the net income for 2013?
d) Prepare a balance sheet for 2013.

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Definitions:

Liability

A legal responsibility or obligation, often involving financial compensation, that arises from actions or agreements.

Payable to Cash

A term indicating that a check or draft is to be paid to the bearer or holder, making it easily transferable.

Negotiated

Refers to the process where parties discuss terms and come to a mutual agreement.

Order Paper

A financial instrument payable to a specific person or entity, thus requiring endorsement for transfer.