Exercise 1-23A (Algo) Preparing financial statements LO 1-5, 1-6, 1-7, 1-8, 1-9Dakota 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 appropriateaccounts 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 AReq B1Req B2Req B3Req B4Prepare an income statement for the Year 2 accounting period.DAKOTA COMPANYIncome StatementFor the Year Ended December 31, Year 2< PrevReq C and D7 of 7Next > Complete this question by entering your answers in the tabs below.Req AReq B1Req B2DAKOTA COMPANYIncome StatementFor the Year Ended December 31, Year 2Req B3Prepare an income statement for the Year 2 accounting period.$0Req B4< Req AReq C and DReq B2 >

Income statement :— It is one of the financial statement that shows profitability, total revenue and…

Exercise 1-23A (Algo) Preparing financial statements LO 1-5, 1-6, 1-7, 1-8, 1-9 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:

Exercise 1-23A (Algo) Preparing financial statements LO 1-5, 1-6, 1-7, 1-8, 1-9 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:

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter12: The Statement Of Cash Flows

Section: Chapter Questions

Problem 12.19E

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