Accounting Event Analysis and Financial Statement Preparation Wilmot Real Estate Company experienced the following events during its first year of operations:

1. Received $50,000 in cash from investors as an equity investment.

2. Borrowed $40,000 in cash from a bank.

3. Purchased two parcels of land, each costing $15,000, for a total of $30,000 cash. The land was purchased for investment purposes.

4. Paid $10,000 cash to rent office equipment for the year.

5. Provided real estate appraisal services valued at $25,000, receiving $20,000 in cash and an account receivable for an additional $5,000.

6. Paid miscellaneous expenses totaling $11,000 in cash.

7. Sold one parcel of land, costing $15,000, for $22,000 cash.

8. Paid a $5,000 cash dividend to shareholders.

Required (a) Using the balance sheet equation as illustrated in this chapter, identify how each of the above events affect the balance sheet equation. Prepare an (b) income statement, (c) a statement of shareholders equity, (d) a balance sheet, and (e) a statement of cash flow for the first year of operations. (a) Hint - Make sure to enter each expense item as a negative amount for this worksheet.

Wilmot Real Estate Co. Statement of Shareholders' Equity For Year 1 Common Stock Retained Earnings Total Beginning balance 0 Net income 20 X 20 X Dividends(enter as negative) (10) X (10) X Stock sales 50,000 50,000 $ 0 Balance at year-end