Canton Company experienced the following accounting events during 2018: Canton Company borrowed $10,000 cash from the National Bank on September 1, 2018. Canton invested the borrowed money in land. Canton leased the land and earned rent revenue of $600 cash. As of December 31, 2018, accrued interest (interest expense) on Cantons bank loan was $400. Required Record the events under an accounting equation. Prepare an income statement, a statement of retained earnings, a balance sheet, and a statement of cash flows for 2018. Part B Canton Company experienced the following accounting events during 2019: Canton earned rent revenue of $1,350 cash in 2019. Canton sold its land for $10,000 cash. Canton accrued interest of $800 on the bank loan. Canton paid cash for the interest due on the bank loan. Canton repaid the $10,000 bank loan (See Event 1 in Part A above) with cash. Required Record the events under an accounting equation. Prepare an income statement, a statement of retained earnings, a balance sheet, and a statement of cash flows for 2019.

Canton Company experienced the following accounting events during 2018: 1. Canton Company borrowed $10,000 cash from the National Bank on September 1, 2018 2. Canton invested the borrowed money in land. 3. Canton leased the land and earned rent revenue of $600 cash. 4. As of December 31, 2018, accrued interest (interest expense) on Canton's bank loan was $400. Required 1. Record the events under an accounting equation. 2. Prepare an income statement, a statement of retained earnings, a balance sheet, and a statement of cash flows for 2018. Part B Canton Company experienced the following accounting events during 2019: 1. Canton earned rent revenue of $1,350 cash in 2019. 2. Canton sold its land for $10,000 cash. 3. Canton accrued interest of $800 on the bank loan. 4. Canton paid cash for the interest due on the bank loan. 5. Canton repaid the $10,000 bank loan (See Event 1 in Part A above) with cash. Required 1. Record the events under an accounting equation. 2. Prepare an income statement, a statement of retained earnings, a balance sheet, and a statement of cash flows for 2019. Inflow from Rent Revenue Outflow for Interest Expense Net Inflow from Operating Activities Cash Flow from Investing Activities Inflow from Sale of Land Outflow for Purchase of Land Net Inflow (Outflow) from Investing Act. Cash Flows from Financing Activities Inflow from Issue of Note Outflow for Repayment of Note Net Inflow (Outflow) from Financing Act. Net Change in Cash Beginning Cash Balance Ending Cash Balance $ 600 $ 750 Canton Company Income Statements For the Years Ended December 31, 2018 2019 Rent Revenue Interest Expense Net Income Statements of Retained Earnings Beginning Retained Earnings Net Income Dividends Ending Retained Earnings $200 $750 Balance Sheets at December 31 Assets Cash $10,600 $750 Land Total Assets Liabilities Interest Payable Note Payable Equity Retained Earnings Total Liabilities and Equity $10,600 $750 Statements of Cash Flows Cash Flows from Operating Activities Accounting Equation Assets Land Cash Equity Com. Ret. Int. Liab. Notes Payab le 2018 Part A Pay. Stock Ear. Beginning Balances $ $ -0- $ -0- $ -0- $ -0- $ -O- -0- 1. Effect of Borrowing 2. Purch. of Land 3. Earned Revenue 4. Accrued Int. Exp. $ 600 + $10,00 0 $10,0 00 + $ 400 $ -- + $ 200 End. / Beg. Balances 2019 Part B 1. Earned Revenue 2. Sold Land 3. Accrued Int. Exp. 4. Paid Interest 5. Repaid Loan ---- ---- Ending Balances $ 750 + $ -0- + $ -0- + $ 750 -0- -0- 1. 1. Canton Company experienced the following accounting events during 2018: 1. Canton Company borrowed $10,000 cash from the National Bank on September 1, 2018 2. Canton invested the borrowed money in land. 3. Canton leased the land and earned rent revenue of $600 cash. 4. As of December 31, 2018, accrued interest (interest expense) on Canton's bank loan was $400. Required 1. Record the events under an accounting equation. 2. Prepare an income statement, a statement of retained earnings, a balance sheet, and a statement of cash flows for 2018. Part B Canton Company experienced the following accounting events during 2019: 1. Canton earned rent revenue of $1,350 cash in 2019. 2. Canton sold its land for $10,000 cash. 3. Canton accrued interest of $800 on the bank loan. 4. Canton paid cash for the interest due on the bank loan. 5. Canton repaid the $10,000 bank loan (See Event 1 in Part A above) with cash. Required 1. Record the events under an accounting equation. 2. Prepare an income statement, a statement of retained earnings, a balance sheet, and a statement of cash flows for 2019