Dakota Company experienced the following events during Year 2. 1. Acquired $25,000 cash from the issue...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Dakota Company experienced the following events during Year 2. 1. Acquired $25,000 cash from the issue of common stock. 2. Paid $20,000 cash to purchase land. 3. Borrowed $20,000 cash. 4. Provided services for $60,000 cash. 5. Paid $2,000 cash for utilities expense. 6. Paid $40,000 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, 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. 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. Can you determine the cash in retained earnings? Dakota Company experienced the following events during Year 2. 1. Acquired $25,000 cash from the issue of common stock. 2. Paid $20,000 cash to purchase land. 3. Borrowed $20,000 cash. 4. Provided services for $60,000 cash. 5. Paid $2,000 cash for utilities expense. 6. Paid $40,000 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, 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. 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. Can you determine the cash in retained earnings?
Expert Answer:
Answer rating: 100% (QA)
ANSWER Lets first record the events in the appropriate general ledger accounts Event Cash Common Sto... View the full answer
Related Book For
Introductory Financial Accounting for Business
ISBN: 978-1260299441
1st edition
Authors: Thomas Edmonds, Christopher Edmonds
Posted Date:
Students also viewed these accounting questions
-
McCullough Hospital uses a job-order costing system to assign costs to its patients. Its direct materials include a variety of items suc as pharmaceutical drugs, heart valves, artificial hips, and...
-
Dakota Company experienced the following events during Year 2. 1. Acquired $30,000 cash from the issue of common stock. 2. Paid $12,000 cash to purchase land. 3. Borrowed $10,000 cash. 4. Provided...
-
The following is accounting information taken from Woodrail Company's adjusted trial balance for 2016: In addition, the following changes occurred in selected accounts during 2016: Required: Using...
-
Use four-digit rounding arithmetic and the formulas (1.1), (1.2), and (1.3) to find the most accurate approximations to the roots of the following quadratic equations. Compute the absolute errors and...
-
What strategies does an RTOS employ to address priority inversion? Can you describe a scenario where priority inversion could cause critical issues and how the RTOS mitigates it ?
-
You roll a six-sided die. Find the probability of each event. 1. Event A: rolling a 3 2. Event B: rolling a 7 3. Event C: rolling a number less than 5
-
1. In what ways is Ingvar Kamprad a manager? In what ways is he a leader? 2. Describe the nature of followership that Kamprad seems to have encouraged at IKEA. 3. Using the Leadership Grid and its...
-
The Alpine House, Incorporated, is a large retailer of snow skis. The company assembled the Information shown below for the quarter ended March 31: Sales Selling price per pair of skis Variable...
-
Discuss and apply your understanding of the OBS (market-related and non-market-related) in light of the recent Public Bank Berthed financial report (2022). Public bank balance sheet 2022. And refer...
-
Suppose you plan to put away some years to build up a nest egg to use as a down payment on a house. You start off by putting away $2,000 today, and over the next three years you are able to put away...
-
Masterson, Inc., has 7 million shares of common stock outstanding. The current share price is $83, and the book value per share is $8. The company also has two bond issues outstanding. The first bond...
-
Determining Retained Earnings and Net Income The following information appears in the records of Becker Corporation at year- end: Accounts Receivable $32,000 Retained Earnings Accounts Payable 12,000...
-
The following table contains prices and dividends for a stock. All prices are after the dividend has been paid (ex-dividend). If you bought the stock on January 1 and sold it on December 31, what is...
-
What is the power output of a 0.33 second 125kg barbell squat moving at 0.68 m/s?
-
One form of congestion avoidance is the permit system, in which a node must have a permit before it can transmit. Suppose a wide area network is using the permit system to control congestion. What...
-
Solve the relation Exz:Solve therelation ne %3D
-
Earnings is calculated deducting: A. Dividends on ordinary shares. B. Dividends on preference shares. C. Tax expense. D. Interest expense.
-
Set out in Figure 16.10 are summarized balance sheets and income statements for F Co. for 20X1 and 20X2. You are required to: Figure 16.10 a. prepare a table of ratios, covering all aspects of...
-
Under IFRS, income statements are required to show: A. Extraordinary items. B. Unusual items. C. Exceptional items. D. None of the above.
Study smarter with the SolutionInn App