On January 1,2016,the Organizers of the Fredonia Corporation Obtained Their

Essay

On January 1,2016,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 2016,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.Using the above information,prepare an income statement and a balance sheet for the Fredonia Corporation.