On January 1, 2018, the following information was drawn from theaccounting records of Carter Company: cash of $800; land of $3,500;notes payable of $600; and common stock of $1,000.

Required

a. Determine the amount of retained earnings asof January 1, 2018.

b. After looking at the amount of retainedearnings, the chief executive officer (CEO) wants to pay a $1,000cash dividend to the stockholders. Can the company pay thisdividend?

c. As of January 1, 2018, what percentage ofthe assets were acquired from creditors?

d. As of January 1, 2018, what percentage ofthe assets were acquired from investors?

e. As of January 1, 2018, what percentage ofthe assets were acquired from retained earnings?

f. Create an accounting equation usingpercentages instead of dollar amounts on the right side of theequation.

g. During 2018, Carter Company earned cashrevenue of $1,800, paid cash expenses of $1,200, and paid a cashdividend of $500. (Hint: It is helpful to record theseevents under an accounting equation before preparing thestatements.)

g-1. Prepare an income statement dated December31, 2018.

g-2. Prepare a statement of changes instockholders’ equity dated December 31, 2018.

g-3. Prepare a balance sheet dated December 31,2018.

g-4. Prepare a statement of cash flows datedDecember 31, 2018.

j. What is the balance in the Revenue accounton January 1, 2019?