Baird Company began operations on January 1, 2018, by issuing common stock for $

Question

Baird Company began operations on January 1, 2018, by issuing common stock for $32,000 cash. During 2018, Baird received $56,400 cash from revenue and incurred costs that required $38,400 of cash payments. Required Prepare a GAAP-based income statement and balance sheet for Baird Company for 2018, under each of the following independent scenarios: Baird is a promoter of rock concerts. The $38,400 was paid to provide a rock concert that produced the revenue. Prepare

A. Balance Sheet Balance Sheet as of 12/31/2018 Assets Cash 0 Total assets $0 Equity Common stock $32,000 Retained earnings 18,000 0 Total equity $50,000

****Can you please provide step by step on the balance sheet****

Explanation / Answer

1) INCOME STATEMENT

Income from revenue =. $56400

Less: Revenue cost =. $ 32000

Net Revenue = $18000

. BALANCESHEET OF BAIRED Company

LIABILITY (A)

Equity share captal $32000

Retained earings. $18000

TOTAL LIABILITY. $ 50000

ASSETS (B)

Cash (working note). $50000

TOTAL ASSETS   $ 50000

working note

calculation of cash

Cash Received from common stock =. $32000

Cash Received from revenue. =. $ 56400

Less,.: Cash Paid for revenue cost. = $38400

Net cash =. $50000

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