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Thomas Corporation Began Business by Issuing $2,000 of Common Stock

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Essay

Thomas Corporation began business by issuing $2,000 of common stock on January 1,2012.The business performed $8,000 of service on account in 2012 and collected $6,000 of this amount by year end.It paid operating expenses of $4,500 and paid a $500 dividend to stockholders.
Required:
a)What is the amount of total assets at the end of 2012?
b)What is the amount of cash on hand at the end of 2012?
c)What is the net income for 2012?
d)Prepare a balance sheet for 2012.


Definitions:

Venture Capital

Financing for new, often high-risk ventures.

Ownership

The act, state, or right of possessing something.

Financing Condition

A provision that stipulates specific financial conditions that must be met for a transaction to proceed.

Voting Preferred Stock

A type of preferred stock that grants holders the right to vote on certain corporate matters, typically in addition to receiving fixed dividend payments.

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