M N o Q R S A B D E F G H 1 1.6 Accounting Equation and Financial Statements Background Information: The New Life Dance Company experienced the following events during 2019: 38 pts. 1 Acquired $40,000 cash from the issue of common stock 2 Paid $15,000 cash to purchase land 3 Borrowed $8,000 in cash 4 Paid $1,500 cash for utilities expense 5 Provided ballet services for $25,000 cash 6 Paid $17,000 cash for other operating expenses 7 Paid $3,200 cash dividend to the stockholders 8 Determined that the market value of the land purchase is now only $15,000 Note: There are drop downs for the Income Statement and Balance Sheet for the labels. a) Complete the accounting equation for the different transactions. The starting balances from January 1 have been included. Once you have completed this, you will have the needed information to complete the Income Statement and Balance Sheet Below. The New Life Dance Company Accounting Equation Assets Liabilities Stockholders Equity Account Title For Cash + Land = Notes Payab + Common Sto + Retained Earnin Retained Earnings Event Annon noon A B N o P Q R s D E F G H J K M The New Life Dance Company Accounting Equation Assets Liabilities Stockholders Equity Account Title For Cash + Land = Notes Payab + Common Sto + Retained Earnin Retained Earnings $3,000 $15,000 $9,000 $9,000 Event Balance 1 2 3 4 5 6 7 8 Total $3,000 $15,000 $-0 + $9,000 $9,000 b) Prepare an income statement for 2019 New Life Dance Company Income Statement For the Year Ended December 31, 2019 Income statement equation: F G H J K L M N O O R S A B C D E b) Prepare an income statement for 2019 New Life Dance Company Income Statement For the Year Ended December 31, 2019 Income statement equation: Revenue minus expenses = profit (loss) Net Income C) Prepare a year-end balance Sheet New Life Dance Company Balance Sheet As of December 31, 2019 Accounting Equation Assets = Liabilities + Stockholders Equity Assets Total Assets Liabilities B D E F G H 1 J K M N o O R s C) Prepare a year-end balance Sheet New Life Dance Company Balance Sheet As of December 31.2019 Accounting Equation Assets = Liabilities + Stockholders Equity Assets Total Assets Liabilities Total Liabilities Stockholders Equity Total Stockholders Equity Total Liabilities and Stockholders Equity