Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Dakota Company experienced the following events during 2018: 1. Acquired $10,000 cash from the issue of common stock. 2. Paid $10,000 cash to purchase land,

image text in transcribed
Dakota Company experienced the following events during 2018: 1. Acquired $10,000 cash from the issue of common stock. 2. Paid $10,000 cash to purchase land, 3. Borrowed $10,000 cash 4. Provided services for $25,000 cash, 5. Pald $1.500 cash for utilities expense 6. Paid $15,000 cash for other operating expenses. 7. Pald a $3,000 cash dividend to the stockholders. 8. Determined that the market value of the land purchased in Event 2 is now $12,500. Required a. The January 1 2018. 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. b-1. Prepare an income statement for the 2018 accounting period. b-2. Prepare a statement of changes in equity for the 2018 accounting period. b-3. Prepare a year-end balance sheet for the 2018 accounting period. b-4. Prepare a statement of cash flows for the 2018 accounting period. c. Determine the percentage of assets that were provided by retained earnings. Can you determine the cash in retained earnings? Complete this question by entering your answers in the tabs below. Reg A Req B1 Reg B2 Reg B3 Req B4 ReqC The January 1, 2018, 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 tities 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.) Show less Assets Event Cash DAKOTA COMPANY Accounting Equation for 2018 Liabilities Stockholders' Equity Account Titles for Notes Land Common Retained Retained Earnings Payable Stock Earnings 30,000 = 01 25.000 15,000 + 10.000 NA 10,000+ Bal 1/1/2018 1 2 10,000 . 4 5 6. 7 8 Totals Req B1 >

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Understand Accounting

Authors: Claude Hitching, Derek Stone

1st Edition

0273018833, 978-0273018834

More Books

Students also viewed these Accounting questions

Question

differentiate between challenge and hindrance demands;

Answered: 1 week ago