Exercise 1-23A (Algo) Preparing financial statements LO 1-5, 1-6, 1-7, 1-8, 1-9 A Dakota Company experienced the following events during Year 2: 1. Acquired $20,000 cash from the issue of common stock. 2. Paid $20,000 cash to purchase land. 3. Borrowed $2,500 cash. 4. Provided services for $40,000 cash. 5. Paid $1,000 cash for utilities expense. 6. Paid $20,000 cash for other operating expenses. 7. Paid a $5,000 cash dividend to the stockholders. 8. Determined that the market value of the land purchased in Event 2 is now $25,000. Required: a. The January 1, Year 2, account balances are shown in the following accounting equation. Record the eight events in the appropriate accounts under an accounting equation. Record the amounts of revenue, expense, and dividends in the Retained Earnings column. Provide the appropriate titles for these accounts in the last column of the table. The first event is shown as an example. b-1. Prepare an income statement for the Year 2 accounting period. b-2. Prepare a statement of changes in equity for the Year 2 accounting period. b-3. Prepare a year-end balance sheet for the Year 2 accounting period. b-4. Prepare a statement of cash flows for the Year 2 accounting period. c-1. Determine the percentage of assets that were provided by retained earnings. c-2. Does the retained earning balance reflect the amount of cash that the company has available to pay dividends? d. Based on the December 31, Year 2, balance sheet, what is the largest cash dividend Dakota could pay? Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Req B3 Req B4 Prepare a statement of cash flows for the Year 2 accounting period. Note: Amounts to be deducted should be indicated with a minus sign. DAKOTA COMPANY Statement of Cash Flows Req C and D < Prev 7 of 7 Next >
Exercise 1-23A (Algo) Preparing financial statements LO 1-5, 1-6, 1-7, 1-8, 1-9 A Dakota Company experienced the following events during Year 2: 1. Acquired $20,000 cash from the issue of common stock. 2. Paid $20,000 cash to purchase land. 3. Borrowed $2,500 cash. 4. Provided services for $40,000 cash. 5. Paid $1,000 cash for utilities expense. 6. Paid $20,000 cash for other operating expenses. 7. Paid a $5,000 cash dividend to the stockholders. 8. Determined that the market value of the land purchased in Event 2 is now $25,000. Required: a. The January 1, Year 2, account balances are shown in the following accounting equation. Record the eight events in the appropriate accounts under an accounting equation. Record the amounts of revenue, expense, and dividends in the Retained Earnings column. Provide the appropriate titles for these accounts in the last column of the table. The first event is shown as an example. b-1. Prepare an income statement for the Year 2 accounting period. b-2. Prepare a statement of changes in equity for the Year 2 accounting period. b-3. Prepare a year-end balance sheet for the Year 2 accounting period. b-4. Prepare a statement of cash flows for the Year 2 accounting period. c-1. Determine the percentage of assets that were provided by retained earnings. c-2. Does the retained earning balance reflect the amount of cash that the company has available to pay dividends? d. Based on the December 31, Year 2, balance sheet, what is the largest cash dividend Dakota could pay? Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Req B3 Req B4 Prepare a statement of cash flows for the Year 2 accounting period. Note: Amounts to be deducted should be indicated with a minus sign. DAKOTA COMPANY Statement of Cash Flows Req C and D < Prev 7 of 7 Next >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Complete this question by entering your answers in the tabs below.
Req A
Req B1
Req B2
Cash flows from operating activities:
Prepare a statement of cash flows for the Year 2 accounting period.
Note: Amounts to be deducted should be indicated with a minus sign.
DAKOTA COMPANY
Statement of Cash Flows
Net cash flow from operating activities
Cash flows from investing activities:
Ending cash balance
Req B3
For the Year Ended December 31, Year 2
Net cash flow from investing activities
Cash flows from financing activities:
Net cash flow from financing activities
Req B4
< Req B3
111
Req C and D
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Req C and D >
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Transcribed Image Text:k
Exercise 1-23A (Algo) Preparing financial statements LO 1-5, 1-6, 1-7, 1-8, 1-9
A
Dakota Company experienced the following events during Year 2:
1. Acquired $20,000 cash from the issue of common stock.
2. Paid $20,000 cash to purchase land.
3. Borrowed $2,500 cash.
4. Provided services for $40,000 cash.
5. Paid $1,000 cash for utilities expense.
6. Paid $20,000 cash for other operating expenses.
7. Paid a $5,000 cash dividend to the stockholders.
8. Determined that the market value of the land purchased in Event 2 is now $25,000.
Required:
a. The January 1, Year 2, account balances are shown in the following accounting equation. Record the eight events in the appropriate
accounts under an accounting equation. Record the amounts of revenue, expense, and dividends in the Retained Earnings column.
Provide the appropriate titles for these accounts in the last column of the table. The first event is shown as an example.
b-1. Prepare an income statement for the Year 2 accounting period.
b-2. Prepare a statement of changes in equity for the Year 2 accounting period.
b-3. Prepare a year-end balance sheet for the Year 2 accounting period.
b-4. Prepare a statement of cash flows for the Year 2 accounting period.
c-1. Determine the percentage of assets that were provided by retained earnings.
c-2. Does the retained earning balance reflect the amount of cash that the company has available to pay dividends?
d. Based on the December 31, Year 2, balance sheet, what is the largest cash dividend Dakota could pay?
Complete this question by entering your answers in the tabs below.
Req A
Req B1
Req B2
Req B3
Req B4
Prepare a statement of cash flows for the Year 2 accounting period.
Note: Amounts to be deducted should be indicated with a minus sign.
DAKOTA COMPANY
Statement of Cash Flows
Req C and D
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