03 Mark's Consulting experienced the following transactions for Year 1, its first year of operations, and Year 2. Assume that all transactions Involve the receipt or payment of cash. Transactions for Year 1 1. Acquired $50,000 by Issuing common stock. 2. Received $135,000 cash for providing services to customers. 3. Borrowed $23,000 cash from creditors. 4. Pald expenses amounting to $60,000 5. Purchased land for $30,000 cash. Transactions for Year 2 Beginning account balances for Year 2 are: Cash Land Notes payable Common stock Retained earnings $118,000 30,000 23,000 50,000 75,000 1. Acquired an additional $28.000 from the issue of common stock. 2. Received $130,000 for providing services 3. Pald $18,000 to creditors to reduce loan 4. Pald expenses amounting to $67,000. 5. Pald a $11,000 dividend to the stockholders. 6. Determined that the market value of the land is $40,000. Land Notes payable Common stock Retained earnings 30,000 23,000 se, 600 75,000 0 1. Acquired an additional $28,000 from the issue of common stock 2. Received $130,000 for providing services, 3. Paid $18,000 to creditors to reduce loan 4. Pald expenses amounting to $67,000. 5. Paid a $11,000 dividend to the stockholders. 6. Determined that the market value of the land is $40.000, 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 is recorded. Exam 6 Assets MARK'S CONSULTING SERVICES Accounting Equation for Year 1 Liabilities Stockholders' Equity Notes Common Retained Payable Stock Earnings + Event Account Titles for Retained Earnings Cash Land 1 + + + 8 00:14:55 2 3 + 4 5 Totals Assets MARK'S CONSULTING SERVICES Accounting Equation for Year 2 Liabilities Stockholders' Equity Notes Common Retained Payable Stock Earnings Event Account Titles for Retained Earnings Cash Land Beg bal 1 2 3 4 5. 6. Totals Prepare an income statement for each year accounting period. MARK'S CONSULTING SERVICES Income Statement For the Year Ended December 31, Year 1 MARK'S CONSULTING SERVICES Income Statement For the Year Ended December 31, Year 2 6 MARK'S CONSULTING SERVICES Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 1 Beginning common stock 01:14:31 Ending common stock Beginning retained earnings Ending retained earnings Total stockholders' equity MARK'S CONSULTING SERVICES Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 2 Beginning common stock Ending common stock Beginning retained earnings Ending retained earnings Total stockholders' equity Balance Sheet As of December 31, Year 1 6 Assets 8 01:14:16 Total assets Liabilities Total liabilities Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity MARK'S CONSULTING SERVICES Balance Sheet As of December 31, Year 2 Assets Total assets For the Year Ended December 31, Year 1 Cash flows from operating activities Net cash flow from operating activities Cash flows from investing activities 1:14:01 Net cash flow from investing activities Cash flows from financing activities Net cash flow from financing activities Ending cash balance MARK'S CONSULTING SERVICES Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flows from operating activities Req A Req B1 Req B2 Reg B3 Req B4 Reg C Req E Determine the amount of cash that is in the retained earnings account at the end of Year 1 and Year 2. Year 1 Year 2 Retained earnings expense, and dividends in the Retained Earnings column. Provide appropriate titles for these accoun 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 e. Determine the balance in the Retained Earnings account immediately after Event 2 in Year 1 is reco is recorded. Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Req B3 Req B4 Reqc Reg E Determine the balance in the Retained Earnings account immediately after Event 2 in Year I is recorded a Year 2 is recorded. Year 1 Year 2 Retained earnings