Fieldstone Company Was Founded on January 1,2015

Essay

Fieldstone Company was founded on January 1,2015.During 2015,the company experienced the following events:
1.Received cash revenue of $25,500
2.Paid cash expenses of $20,000
3.Issued common stock for $30,000 cash
4.Paid cash dividend of $2,000 to owners.
Required:
a)Write an accounting equation and record effects of each accounting event under appropriate general ledger account headings,showing dollar amounts of increases and decreases and totals at the end of the year.Precede the amount with a minus sign if the transaction reduces that section of the equation.Enter 0 for items not affected.
b)Prepare the 2015 income statement and balance sheet for Fieldstone Company.