Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Mark's Consulting experienced the following transactions for 2018, its first year of operations, and 2019. Assume that all transactions involve the receipt or payment of
Mark's Consulting experienced the following transactions for 2018, its first year of operations, and 2019.Assume that all transactions involve the receipt or payment of cash.
Transactions for 2018
- Acquired $85,000 by issuing common stock.
- Received $135,000 cash for providing services to customers.
- Borrowed $22,000 cash from creditors.
- Paid expenses amounting to $53,000.
- Purchased land for $35,000 cash.
Transactions for 2019
Beginning account balances for 2019 are:
Cash$154,000Land35,000Notes payable22,000Common stock85,000Retained earnings82,000
- Acquired an additional $27,000 from the issue of common stock.
- Received $137,000 for providingservices.
- Paid $17,000 to creditors to reduce loan.
- Paid expenses amounting to $68,000.
- Paid a $11,500 dividend to the stockholders.
- Determined that the market value of the land is $45,000.
- Determine the amount of cash that is in the retained earnings account at the end of 2018 and 2019.
- Determine the balance in the Retained Earnings account immediately after Event 2 in 2018 and in 2019 are recorded.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started