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 1. Acquired $65,000 by Issuing common stock. 2. Received $115,000 cash for providing services to customers. 3. Borrowed $18,000 cash from creditors. 4. Pald expenses amounting to $57,000. 5. Purchased land for $40,000 cash. Transactions for Year 2 Beginning account balances for Year 2 are: Cash Land Notes payable Common stock Retained earnings $101,000 40,000 18,000 65,000 58,600 1. Acquired an additional $23,000 from the issue of common stock. 2. Received $133,000 for providing services. 3. Paid $13,000 to creditors to reduce loan. 4. Pald expenses amounting to $72,000. 5. Paid a $13,500 dividend to the stockholders. 6. Determined that the market value of the land is $50,000. Required: 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. b-1. Prepare an Income statement for each year accounting period. b-2 Prepare a statement of changes in stockholders' equity for each year accounting period. b-3. Prepare a year-end balance sheet for each year accounting period. b-4. Prepare a statement of cash flows for each year accounting period. c. Determine the amount of cash that is in the retained earnings account at the end of Year 1 and Year 2 e. Determine the balance in the Retained Earnings account Immediately after Event 2 in Year 1 is recorded and after Event 2 In Year 21s recorded. Complete this question by entering your answers in the tabs below. Req A Req Bi Req B2 Req B3 Req Bi Raq C Req E Show less 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. Note: Enter any decreases to account balances with a minus sign. If there is no effect on the Account Titles for Retained Earnings, leave the cell blank, Not all cells will require input. MARK'S CONSULTING Accounting Equation for Year 1 Liabilities Notes Stockholders' Equity Account Titles for + Common + Payable Stock Retained Earnings Retained Earnings Assets Event Cash Land 1. 4 2 4 3 4. 5. Totals "1 = 4 Assets + ++ 4 4 MARK'S CONSULTING + fe 4 Accounting Equation for Year 2 Liabilities Stockholders' Equity Account Titles for

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 1. Acquired $65,000 by Issuing common stock. 2. Received $115,000 cash for providing services to customers. 3. Borrowed $18,000 cash from creditors. 4. Pald expenses amounting to $57,000. 5. Purchased land for $40,000 cash. Transactions for Year 2 Beginning account balances for Year 2 are: Cash Land Notes payable Common stock Retained earnings $101,000 40,000 18,000 65,000 58,600 1. Acquired an additional $23,000 from the issue of common stock. 2. Received $133,000 for providing services. 3. Paid $13,000 to creditors to reduce loan. 4. Pald expenses amounting to $72,000. 5. Paid a $13,500 dividend to the stockholders. 6. Determined that the market value of the land is $50,000. Required: 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. b-1. Prepare an Income statement for each year accounting period. b-2 Prepare a statement of changes in stockholders' equity for each year accounting period. b-3. Prepare a year-end balance sheet for each year accounting period. b-4. Prepare a statement of cash flows for each year accounting period. c. Determine the amount of cash that is in the retained earnings account at the end of Year 1 and Year 2 e. Determine the balance in the Retained Earnings account Immediately after Event 2 in Year 1 is recorded and after Event 2 In Year 21s recorded. Complete this question by entering your answers in the tabs below. Req A Req Bi Req B2 Req B3 Req Bi Raq C Req E Show less 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. Note: Enter any decreases to account balances with a minus sign. If there is no effect on the Account Titles for Retained Earnings, leave the cell blank, Not all cells will require input. MARK'S CONSULTING Accounting Equation for Year 1 Liabilities Notes Stockholders' Equity Account Titles for + Common + Payable Stock Retained Earnings Retained Earnings Assets Event Cash Land 1. 4 2 4 3 4. 5. Totals "1 = 4 Assets + ++ 4 4 MARK'S CONSULTING + fe 4 Accounting Equation for Year 2 Liabilities Stockholders' Equity Account Titles for

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

Chapter2: Financial Statements And The Annual Report

Section: Chapter Questions

Problem 2.8P: Statement of Cash Flows Colorado Corporation was organized at the beginning of the year, with the...

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