Question
Acquired an additional $28,000 from the issue of common stock. Received $130,000 for providing services. Paid $18,000 to creditors to reduce loan. Paid expenses amounting
Acquired an additional
$28,000
from the issue of common stock.\ Received
$130,000
for providing services.\ Paid
$18,000
to creditors to reduce loan.\ Paid expenses amounting to
$67,000
.\ Paid a
$11,000
dividend to the stockholders.\ 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.\ Complete this question by entering your answers in the tabs below.\ \\\\table[[Req A,Req B1,Req B3,Req B4,Req C]]\ Determine the amount of cash that is in the retained earnings account at the end of Year 1 and Year 2.\ \\\\table[[,Year 1,Year 2],[Retained earnings,,]]
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started