On January 1, Year 1, the Organizers of the Fredonia

Essay

On January 1, Year 1, the organizers of the Fredonia Corporation obtained their charter authorizing 400,000 shares of $2 par common stock. Fredonia issued 30,000 shares of $2 par common stock for $8 per share. During Year 1, the corporation earned $820,000 in cash revenue and paid $700,000 in cash expenses, not including income tax. The company declared and paid cash dividends totaling $28,000. Fredonia Corporation is in the 30% tax bracket.Required:
Using the above information, prepare an income statement and a balance sheet for the Fredonia Corporation.