Dakota Company experienced the following events during Year 2.

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. Paid $1,500 cash for utilities expense.
6. Paid $15,000 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 $12,500.

Required a. The January 1, Year 2, 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. Not all cells in the "Accounts Titles for Retained Earnings" column may require an input - leave cells blank if there is no corresponding Retained Earnings input needed.)

After the first question is answered.

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?

Assets + Event DAKOTA COMPANY Accounting Equation for Year 2 Liabilities Stockholders' Equity Notes Common Retained Land Payable Stock Earnings 30,000 0 + 25,000 + 15,000 10,000 + Account Titles for Retained Earnings Cash 11 Balance 1/1/Year 2 1. 2. 10,000 + 10,000 + + + + + + 3 + + 4. + + 5. + 6 + 7. 8. +++++ +++ + Totals 20,000 + 30,000 35,000 + 15,000