Mark’s Consulting experienced the following transactions for Year 1, its first year of operations, and Year 2. Assume that all transactions involve the receipt or payment of cash. Transactions for Year 1Acquired $55,000 by issuing common stock.Received $105,000 cash for providing services to customers.Borrowed $16,000 cash from creditors.Paid expenses amounting to $59,000.Purchased land for $35,000 cash.Transactions for Year 2 Beginning account balances for Year 2 are: Cash$82,000 Land 35,000 Notes payable 16,000 Common stock 55,000 Retained earnings 46,000 Acquired an additional $21,000 from the issue of common stock.Received $131,000 for providing services.Paid $11,000 to creditors to reduce loan.Paid expenses amounting to $74,000.Paid a $14,500 dividend to the stockholders.Determined that the market value of the land is $45,000. a. Record the effects of each accounting event under the appropriate headings for each year. Record the amounts of revenue, expense, and dividends in the Retained Earnings column. Provide appropriate titles for these accounts in the last column of the table.

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Description: Mark’s Consulting experienced the following transactions for Year 1, its first year of operations, and Year 2. Assume that all transactions involve the receipt or payment of cash. Transactions for Year 1Acquired $55,000 by issuing common stock.Receiv

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Mark’s Consulting experienced the following transactions for Year 1, its first year of operations, and Year 2. Assume that all transactions involve the receipt or payment of cash.

Transactions for Year 1

Acquired $55,000 by issuing common stock.
Received $105,000 cash for providing services to customers.
Borrowed $16,000 cash from creditors.
Paid expenses amounting to $59,000.
Purchased land for $35,000 cash.

Transactions for Year 2

Beginning account balances for Year 2 are:


Cash	$	82,000
Land		35,000
Notes payable		16,000
Common stock		55,000
Retained earnings		46,000

Acquired an additional $21,000 from the issue of common stock.
Received $131,000 for providing services.
Paid $11,000 to creditors to reduce loan.
Paid expenses amounting to $74,000.
Paid a $14,500 dividend to the stockholders.
Determined that the market value of the land is $45,000.

a. Record the effects of each accounting event under the appropriate headings for each year. Record the amounts of revenue, expense, and dividends in the Retained Earnings column. Provide appropriate titles for these accounts in the last column of the table.

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