Transactions for Year 1 1. Acquired $65,000 by Issuing common stock. 2. Received $115,000 cash for...

 

 

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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 58,000 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. Pald 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 2 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 58,000 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. Pald 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 2

Answer rating: 100% (QA)

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