Question: please read the questions. there a familiar problem like this but the numbers are different Exercise 1-26A (Static) Prepare financial statements covering two accounting cycles








Exercise 1-26A (Static) Prepare financial statements covering two accounting cycles LO 1-5, 1-6 17,18,19,110 Ortho Company experienced the following events during its first- and second-year operations: Year 1 Transactions: 1. Acquired $68,000 cash from the issue of common stock. 2. Borrowed $36,000 cash from the National Credit Union. 3. Earned $59,000 of cash revenue. 4. Incurred $43,000 of cash expenses: 5. Paid a $7,000 cash dividend. 6. Paid $37.000 cash to purchase land. Year 2 Transactions: 1. Acquired $50,000 cash from the issue of common stock. 2. Borrowed $20,000 cash from the National Credit Union. 3. Earned $85,000 of cash revenue. 4. Incurred $62,000 of cash expenses. 5. Paid a $2,000 cash dividend. 6. Paid $25,000 cash to purchase land. Required: a. Record the transactions in an accounting equation like the equation shown next. Record the amounts of revenue, 5. Paid a $2,000 cash dividend. 6. Paid $25.000 cash to purchase land Required: a. Record the transactions in an accounting equation like the equation shown next. 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. Show the totals at the end of Year 1 and use these totals as the beginning balances for the second accounting cycle. b-1. Prepare an income statement for Year 1 and Year 2. b-2. Prepare a stockholders' equity for Year 1 and Year 2. b.3. Prepare a balance sheet for Year 1 and Year 2 . b.4. Prepare a statement of cash flows for Year 1 and Year 2. Complete this question by entering your answers in the fabs below. Record the transactions in an accounting equation like the equation shown next. Record the amounts of revenue, expense, and div column. Provide the appropriate tities for these accounts in the last column of the table. Show the totals at the end of Year 1 and balances for the second accounting cycle. Note: Enter any decreases to account balances with a minus sign. Not all cells require input. balances for the second accounting cycle. Note: Enter any decreases to account balances with a minus sign. Not all celis require input. ecord the transactions in an accounting equation like the equation shown next. Record the amounts of revenue, expense, and div Jlumn. Provide the appropriate titles for these accounts in the last column of the table. Show the totals at the end of Year 1 and alances for the second accounting cycle. ote: Enter any decreases to account balances with a minus sign. Not all cells require input. Complete this question by entering your answers in the tabs below. Prepare an income statement for Year 1 and Year 2. Complete this question by entering your answers in the tabs below. Prepare a stockholders' equity for Year 1 and Year 2. Prepare a balance sheet for Year 1 and Year 2 . Prepare a statement of cash flows for Year 1 and Year 2. Note: Amounts to be deducted should be indicated with a minus sign
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
