accountint statement of cash flow problem for 2018-2019
Problem 1-33 Preparing financial statements for two complete accounting cycles LO 1-3, 1-4,1-5, 1-7, 1-8, 1-9 The following information applies to the questions displayed below) Mark's Consulting experienced the following transactions for 2018, its first year of operations, and 2019. Assume that all transactions involve the receipt or payment of cash Transactions for 2018 1. Acquired $20,000 by issuing common stock 2. Received $35,000 cash for providing services to customers. 3. Borrowed $25.000 cash from creditors. 4. Paid expenses amounting to $22,000. 5. Purchased land for $30,000 cash. Transactions for 2019 Beginning account balances for 2019 are: Cash Land Notes payable Common stock Retained earnings $28.000 30,000 25,000 20,000 13,000 1. Acquired an additional $24.000 from the issue of common stock Transactions for 2018 1. Acquired $20,000 by issuing common stock. 2. Received $35,000 cash for providing services to customers. 3. Borrowed $25,000 cash from creditors. 4. Paid expenses amounting to $22,000. 5. Purchased land for $30,000 cash. Transactions for 2019 Beginning account balances for 2019 are: $28,000 Cash Land Notes payable Common stock Retained earnings 30,000 25,000 20,000 13,000 1. Acquired an additional $24,000 from the issue of common stock. 2. Received $95,000 for providing services. 3. Paid $15,000 to creditors to reduce loan. 4. Paid expenses amounting to $71,500. 5. Paid a $3,000 dividend to the stockholders. 6. Determined that the market value of the land is $47,000. Problem 1-33 Part b-4 b-4. Prepare a statement of cash flows for each year accounting period. Answer is not complete. Complete this question by entering your answers in the tabs below. Stmt CF 2018 Stmt c.2019 Prepare a statement of cash flows for the year 2018. (Amounts to be deducted should be indicated with a minus sign.) MARK'S CONSULTING Statement of Cash Flows For the Year Ended December 31, 2018 Cash flows from operating activities: Cash payments for expenses $ 13,000 25,000 38.000 Net cash flow from operating activities Cash flows from investing activities: vrenare a raremenr or can rows or ne vear UX amounts ro ne nennennoun ne in Required information Statement of Cash Flows For the Year Ended December 31, 2018 Cash flows from operating activities: Cash payments for expenses $ 13,000 25,000 $ 38,000 Net cash flow from operating activities Cash flows from investing activities: Cash payment for land $(30,000) (30,000) Net cash flow from investing activities Cash flows from financing activities: Cash receipts from stock issue Cash payment for dividends $ 20,000 0 % 20,000 Net cash flow from financing activities Net increase in cash Plus: Beginning cash balance Ending cash balance 0 MARK'S CONSULTING Statement of Cash Flows For the Year Ended December 31, 2019 Cash flows from operating activities: Cash payments for expenses $ 23,500 Cash payment on debt (15,000) $ 8,500 Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities: Cash payment for land Net cash flow from financing activities Plus: Beginning cash balance Ending cash balance 28,000 $ 28,000
