Dakota company experienced the following events during year 2.

1. Acquired $30,000 cash from the issue of common stock.

2. Paid $10,000 cash to purchase land

3. Narrowed $10,000 cash

4. Provides services for $50,000 cash

5. Paid $1,500 cash for utilitie expenses

6. Paid $35,000 cash for other operating expenses

7. Paid $10,000 cash dividend to the stockholders

8. Determined that the market value of the land purchased in event 2 is now $12,500

After the first question is answered.

2. prepare an income statement for the year 2 accounting period?

3. Prepare a statement of changes in equity for the year 2 accounting period?

4.prepare a year end balance sheet for the year 2 accounting period?

5. Prepare a statement of cash flows for the year 2 accounting period?

6. Determine the percentage of assets that were provided by retained earnings?

7. Does the retained earning balance reflect the amount of cash that the company has available to pay dividends?

Yes or no?

8. Based on the December 31, year 2 balance sheet, what is the largest cash dividend Dakota could pay?