Dakota Company experienced the following events during 2016. 1. Acquired $20,000 cash from the issue of common stock. 2. Paid $25,000 cash to purchase land. 3. Borrowed $10,000 cash. 4. Provided services for $42,500 cash. 5. Paid $1,500 cash for utilities expense. 6. Paid $30,000 cash for other operating expenses. 7. Paid a $3,000 cash dividend to the stockholders. 8. Determined that the market value of the land purchased in Event 2 is now $27,500. Required a. The January 1, 2016, general ledger account balances are shown in the following accounting equation. Record the eight events in the appropriate general ledger accounts. Record the amounts of revenue, expense, and dividends in the Retained Earnings column. Provide the appropriate titles for these accounts in the last column of the table. The first event is shown as an example. (Enter any decreases to account balances with a minus sign. Select "NA" if there is no effect on the "Account Titles for Retained Earnings".) DAKOTA COMPANY Accounting Equation for 2016 Assets Stockholders' Equity Common Liabilities Account Titles for Event Notes Retained Retained Earnings Cash Land Payable Stock Earnings Balance 15,000 0+ 10,000 8,000 17,000 + 1/1/2016 20,000 NA 1. 20,000 + 2. 3. 4. + 5. + 6. + + + 7. + 8. Totals + + + + + b-1. Prepare an income statement for the 2016 accounting period. DAKOTA COMPANY Income Statement For the Year Ended December 31, 2016 b-2. Prepare a statement of changes in equity for the 2016 accounting period. DAKOTA COMPANY Statement of Changes in Stockholders' Equity For the Year Ended December 31, 2016 Beginning common stock Ending common stock Beginning retained earnings Ending retained earnings Total stockholders' equity b-3. Prepare a year-end balance sheet for the 2016 accounting period. DAKOTA COMPANY Balance Sheet As of December 31, 2016 Assets Total assets Liabilities Total liabilities Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity b-4. Prepare a statement of cash flows for the 2016 accounting period. (Amounts to be deducted shoul be indicated with a minus sign.) DAKOTA COMPANY Statement of Cash Flows For the Year Ended December 31, 2016 Cash flows from operating activities: Net cash flow from operating activities Cash flows from investing activities: Net cash flow from investing activities Cash flows from financing activities: Net cash flow from financing activities Ending cash balance c-1. Determine the percentage of assets that were provided by retained earnings. (Round your answer to 1 decimal place.) Percentage of assets % c-2. Can you determine the cash in retained earnings? Yes No
