Mark's Consulting experienced the following transactions for Year 1, its first year of operations, and Year 2. Assume that all transactions involve the receipt or payment of cash. Transactions for Year 1 1. Acquired $55,000 by issuing common stock. 2. Received $105,000 cash for providing services to customers 3. Borrowed $16,000 cash from creditors. 4. Paid expenses amounting to $59,000. 5. Purchased land for $35,000 cash. Transactions for Year 2 Beginning account balances for Year 2 are: Cash, Land Notes payable Common stock Retained earnings $82,000 35,000 16,000 55,000 46,000 1. Acquired an additional $21,000 from the issue of common stock. 2. Received $131,000 for providing services 3. Paid $11.000 to creditors to reduce loan Required a. Record the effects of each accounting event under the appropriate headings for each year. Record the amounts of revenue, expense, and dividends in the Retained Earnings column. Provide appropriate titles for these accounts in the last column of the table. b-1. Prepare an income statement for each year accounting period. b-2. Prepare a statement of changes in stockholders' equity for each year accounting period b-3. Prepare a year-end balance sheet for each year accounting period. b-4. Prepare a statement of cash flows for each year accounting period. c. Determine the amount of cash that is in the retained earnings account at the end of Year 1 and Year 2 e. Determine the balance in the Retained Earnings account immediately after Event 2 in Year 1 is recorded and after Event 2 in Year 2 is recorded. Complete this question by entering your answers in the tabs below. Req A Req B1 Req 82 Req B31 Req B4 Req C Req E Record the effects of each accounting event under the appropriate headings for each year. Record the amounts of revenue, expense, and dividends in the Retained Earnings column, Provide appropriate titles for these accounts in the last column of the table. (Enter any decreases to account balances with a minus sign. If there is no effect on the Account Titles for Retained Earnings, leave the cell blank. Not all cells will require input.) MARK'S CONSULTING SERVICES Show less & Record the effects of each accounting event under the appropriate headings for each year. Record the amounts of revenue, expense, and dividends in the Retained Earnings column. Provide appropriate titles for these accounts in the last column of the table. (Enter any decreases to account balances with a minus sign. If there is no effect on the Account Titles for Retained Earnings, leave the cell blank. Not all cells will require Input.) Show less & MARK'S CONSULTING SERVICES Accounting Equation for Year 1 Liabilities + Assets Stockholders' Equity Event Account Titles for Cash Land Notes: Payable Common Stock Retained Earnings Retained Earnings 1 + + 2 + + 3. = + + 4. + 5 Totals Event Cash Assets MARK'S CONSULTING SERVICES Accounting Equation for Year 2 Stockholders' Equity Liabilities Notes Land Common Retained Account Titles for Retained Earnings Assets MARK'S CONSULTING SERVICES Accounting Equation for Year 2 Liabilities 10 Stockholders' Equity Account Titles for Land Notes Payable Common Retained Retained Earnings Stock Earnings + + + + Event Beg. bal 1. 2. Cash + + 3. 4. + 5. 6. Totals ++ Prepare an income statement for each year accounting period. MARK'S CONSULTING SERVICES Income Statement For the Year Ended December 31, Year 1 MARK'S CONSULTING SERVICES Income Statement For the Year Ended December 31, Year 2 Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 1 Beginning common stock Ending common stock Beginning retained earnings Ending retained earnings Total stockholders' equity MARK'S CONSULTING SERVICES 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 Assets MARK'S CONSULTING SERVICES Balance Sheet As of December 31, Year 1 Total assets Liabilities Total liabilities Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity MARK'S CONSULTING SERVICES Assets MARK'S CONSULTING SERVICES Balance Sheet As of December 31, Year 2 Total assets Liabilities Total liabilities Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity Determine the amount of cash that is in the retained earnings account at the end of Year 1 and Year 2. Year 1 Year 2 Retained earnings A Determine the balance in the Retained Earnings account immediately after Event 2 in Year 1 is recorded and after Event 2 in Year 2 is recorded. Year 1 Year 2 Retained earnings Statement of Cash Flows For the Year Ended December 31, Year 1 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 MARK'S CONSULTING SERVICES 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 Cash flows from financing activities Net cash flow from financing activities Ending cash balance