The following transactions apply to the Garber Corporation for Year 1, its first year in business.1) Issued stock to investors, $48,000.2) The company borrowed $42,000 cash from the bank.3) Services were provided to customers and $50,000 cash was received.4) The company acquired land for $44,000.5) The company paid $34,000 rent for the building where it does its business.6) The company paid $3,200 for supplies that were used during the period.7) The company sold the land acquired in item 5 for $44,000.8) A dividend of $1,000 was paid to the owners.9) Repaid $20,000 of the loan described in item 2.Required:a. Prepare an income statement, statement of changes in equity, and balance sheet for Year 1.b. Prepare a statement of cash flows for Year 1.
What will be an ideal response?
a.
| Garber Corporation |
| Income Statement |
| For the Year Ended December 31, Year 1 |
| Service revenue | $ 50,000 |
| Operating expenses | (37,200) |
| Net income | $ 12,800 |
b.
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