Marks 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 $20,000 by issuing common stock.

Received $35,000 cash for providing services to customers.

Borrowed $25,000 cash from creditors.

Paid expenses amounting to $22,000.

Purchased land for $30,000 cash.

Transactions for 2019

Beginning account balances for 2019 are:

Cash	$	28,000
Land		30,000
Notes payable		25,000
Common stock		20,000
Retained earnings		13,000

Acquired an additional $24,000 from the issue of common stock.

Received $95,000 for providing services.

Paid $15,000 to creditors to reduce loan.

Paid expenses amounting to $71,500.

Paid a $3,000 dividend to the stockholders.

Determined that the market value of the land is $47,000.

Prepare an income statement for the year 2018.

MARK'S CONSULTING
Income Statement
For the Year Ended December 31, 2018
Account Payable/ Acccount Receivavle, cash/ common Stock
	$0

Prepare an income statement for the year 2019.

MARK'S CONSULTING
Income Statement
For the Year Ended December 31, 2019
	$0

Prepare a statement of changes in stockholders equity for the year 2018.

MARK'S CONSULTING
Statement of Changes in Stockholders Equity
For the Year Ended December 31, 2018
Beginning common stock	$0
Plus: Common stock issued	20,000
Ending common stock		$20,000
Beginning retained earnings	$0
Plus: Net income	13,000
Ending retained earnings		13,000
Total stockholders equity		$33,000

Prepare a statement of changes in stockholders equity for the year 2019.

MARK'S CONSULTING
Statement of Changes in Stockholders Equity
For the Year Ended December 31, 2019
Beginning common stock	$20,000
Plus: Common stock issued	24,000
Ending common stock		$44,000
Beginning retained earnings	$13,000
Plus: Net income	23,500
Less: Dividends	3,000
Ending retained earnings		33,500
Total stockholders equity		$77,500

Prepare a year-end balance sheet for the year 2018.

MARK'S CONSULTING
Balance Sheet
As of December 31, 2018
Assets
Cash
Land
Total assets		$0
Liabilities
Notes payable
Total liabilities		$0
Stockholders' Equity
Common stock
Retained earnings
Total stockholders' equity		0
Total liabilities and stockholders' equity		$0

Prepare a year-end balance sheet for the year 2019.

MARK'S CONSULTING
Balance Sheet
As of December 31, 2019
Assets
Cash
Land
Total assets		$0
Liabilities
Notes payable
Total liabilities		$0
Stockholders' Equity
Common stock
Retained earnings
Total stockholders' equity		0
Total liabilities and stockholders' equity		$0

Prepare a statement of cash flows for the year 2018. (Amounts to be deducted should be indicated with a minus sign.)

MARK'S CONSULTING
Statement of Cash Flows
For the Year Ended December 31, 2018
Cash flows from operating activities:
Net cash flow from operating activities		$0
Cash flows from investing activities:
Net cash flow from investing activities		0
Cash flows from financing activities:
Net cash flow from financing activities		0
Ending cash balance		$0

Prepare a statement of cash flows for the year 2019. (Amounts to be deducted should be indicated with a minus sign.)

MARK'S CONSULTING
Statement of Cash Flows
For the Year Ended December 31, 2019
Cash flows from operating activities:
Net cash flow from operating activities		$0
Cash flows from investing activities
Cash flows from financing activities:
Net cash flow from financing activities		0
Ending cash balance		$0

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.