Dakota Company experienced the following events during Year 2:1. Acquired $15,000 cash from the issue of common stock.2. Paid $15,000 cash to purchase land.3. Borrowed $5,000 cash.4. Provided services for $55,000 cash.5. Paid $2,000 cash for utilities expense.6. Paid $45,000 cash for other operating expenses.7. Paid a $1,000 cash dividend to the stockholders.8. Determined that the market value of the land purchased in Event 2 is now $16,000.Requireda. The January 1, Year 2, general ledger account balances are shown in the following accounting equation. Record the eight eventsin the appropriate general ledger accounts. Record the amounts of revenue, expense, and dividends in the Retained Earningscolumn. 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. How much cash is in the Retained Earnings account?acesComplete this question by entering your answers in the tabs below.RegReq B1Reg B2Req B3-Req B4Reg C1Reg C2The January 1, Year 2, general ledger account balances are shown in the following accounting equation. Record the eight events in the appropriate generalledger accounts. Record the amounts of revenue, expense, and dividends in the Retained Earnings column. Provide the appropriate titles for these accounts inthe last column of the table. The first event is shown as an example. (Enter any decreases to account balances with a minus sigo.)ACraw1 of 1PreyNext Complete this question by entering your answers in the tabs below.Req AReq B1Req B2Req B3Req B4Req C1Req C2The January 1, Year 2, general ledger account balances are shown in the following accounting equation. Record the eight events in the appropriate geneledger accounts. Record the amounts of revenue, expense, and dividends in the Retained Earnings column. Provide the appropriate titles for these accothe last column of the table. The first event is shown as an example. (Enter any decreases to account balances with a minus sign.)Show leDAKOTA COMPANYAccounting Equation for Year 2AssetsLiabilitiesStockholders' Equity%3DAccount Titles forRetained EarningsEventNotesCommon+.StockRetainedCashLandPayableEarningsBeginning balance14,500 +10,000 =10,000 +10,000 +4,5001.15,000 +15,000 +2.3.+%3D4.5.+%3D6.%3D7.+%3D+8.29,500 +10,000 =10,000 +25,000 +4,500Totals< Req AReq B1<>< Prey1 of 1Next

ota Company experienced the following events during Year 2: Acquired $15,000 cash from the issue of common stock. Paid $15,000 cash to purchase land. Borrowed $5,000 cash. Provided services for $55,000 cash. Paid $2,000 cash for utilities expense. Paid $45,000 cash for other operating expenses. . Paid a $1,000 cash dividend to the stockholders. E. Determined that the market value of the land purchased in Event 2 is now $16,00. Required a. The January 1, Year 2, general ledger account balances are shown in the following accounting equation. Record the eight events in the appropriate general ledger accounts. 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

ota Company experienced the following events during Year 2: Acquired $15,000 cash from the issue of common stock. Paid $15,000 cash to purchase land. Borrowed $5,000 cash. Provided services for $55,000 cash. Paid $2,000 cash for utilities expense. Paid $45,000 cash for other operating expenses. . Paid a $1,000 cash dividend to the stockholders. E. Determined that the market value of the land purchased in Event 2 is now $16,00. Required a. The January 1, Year 2, general ledger account balances are shown in the following accounting equation. Record the eight events in the appropriate general ledger accounts. 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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following selected transactions occur during the first year of operations. Determine how each should be reported in the statement of cash flows.1. Issued one million shares of common stock at $20 per share.2. Paid $75,000 to suppliers for inventory.3. Paid a dividend of $1 per share to common stockholders. 4. Loaned $50,000 to an employee and accepted a note receivable.
Maben Company was started on January 1, Year 1, and experienced the following events during its first year of operation: Acquired $32,000 cash from the issue of common stock. Borrowed $44,000 cash from National Bank. Earned cash revenues of $60,000 for performing services. Paid cash expenses of $51,000. Paid a $2,200 cash dividend to the stockholders. Acquired an additional $32,000 cash from the issue of common stock. Paid $11,000 cash to reduce the principal balance of the bank note. Paid $49,000 cash to purchase land. Determined that the market value of the land is $69,000. Required Record the preceding transactions in the horizontal statements model. Also, in the Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). If the element is not affected by the event, leave the cell blank. The first event is shown as an example. (Enter any decreases to account balances and cash outflows with a minus sign. Not all…
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Nelson Company experienced the following transactions during Year 1, its first year in operation. 1. Acquired $10,000 cash by issuing common stock. 2. Provided $6,300 of services on account. 3. Paid $2,600 cash for operating expenses. 4. Collected $3,900 of cash from customers in partial settlement of its accounts receivable. 5. Paid a $300 cash dividend to stockholders. What is the balance of the retained earnings that will be reported on the balance sheet as of December 31, Year 1? Multiple Choice $13,400 $11,300 $3,400 $3,700
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In addition, the following transactions took place during the year: 1. Common stock was issued for $100,000 in cash. 2. Long-term investments were sold for $50,000 in cash. The original cost of the investments also was $50,000. 3. $80,000 in cash dividends was paid to shareholders. 4. The company has no outstanding debt, other than those payables listed above. 5. Operating expenses include $30,000 in depreciation expense. Required: 1. Prepare a statement of cash flows for 2016 for the Diversified Portfolio Corporation. Use the direct method for reporting operating activities. 2. Prepare the cash flows from operating activities section of Diversified’s 2016 statement of cash flows using the indirect method.
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