Dakota Company experienced the following events during Year 2: 1. Acquired $20,000 cash from the issue of common stock 2. Paid $20,000 cash to purchase land. 3. Borrowed $2,500 cash. 4. Provided services for $40,000 cash. 5. Paid $1,000 cash for utilities expense. 6. Pald $20,000 cash for other operating expenses. 7. Paid a $5,000 cash dividend to the stockholders. 8. Determined that the market value of the land purchased in Event 2 is now $25,000 Required a. The January 1, Year 2, account balances are shown in the following accounting equation. Record the eight events in the appropriate accounts under an accounting equation 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 Year 2 accounting period, b-2. Prepare a statement of changes in equity for the Year 2 accounting period. b-3. Prepare a year-end balance sheet for the Year 2 accounting period b-4. Prepare a statement of cash flows for the Year 2 accounting period. 0-1. Determine the percentage of assets that were provided by retained earnings. c-2. Does the retained earning balance reflect the amount of cash that the company has available to pay dividends? d. Based on the December 31, Year 2, balance sheet, what is the largest cash dividend Dakota could pay? Assets Event Cash DAKOTA COMPANY Accounting Equation for Year 2 Llabilities Stockholders' Equity Land Notes Common Retained Payable Stock Earnings 20,000 = 0 + 15,000+ 13,000 + 20,000+ Account Titles for Retalned Earnings Balance 1/1/Year 2 1. 8,000 + 20,000 - 2. 3. 4 5. ++ 6. 7 8 Totals DAKOTA COMPANY Income Statement For the Year Ended December 31, Year 2 DAKOTA COMPANY Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 2 Beginning common stock Ending common stock Beginning retained earnings Ending retained earnings Total stockholders' equity DAKOTA COMPANY Balance Sheet As of December 31, Year 2 Assets Total assets Liabilities Total liabilities Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity DAKOTA COMPANY Statement of Cash Flows For the Year Ended December 31. Year 2 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. Percentage of assets c-2. Does the retained earning balance reflect the cash for dividends? d. Cash dividend