Marks 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 $50,000 by issuing common stock.
2. Received $135,000 cash for providing services to customers.
3. Borrowed $23,000 cash from creditors.
4. Paid expenses amounting to $60,000.
5. Purchased land for $30,000 cash.

Transactions for Year 2

Beginning account balances for Year 2 are:

1. Acquired an additional $28,000 from the issue of common stock.
2. Received $130,000 for providing services.
3. Paid $18,000 to creditors to reduce loan.
4. Paid expenses amounting to $67,000.
5. Paid a $11,000 dividend to the stockholders.
6. Determined that the market value of the land is $40,000

Cash Land Notes payable Common stock Retained earnings $118,000 30,000 23,000 50,000 75,000 Assets MARK'S CONSULTING SERVICES Accounting Equation for Year 1 Liabilities Stockholders' Equity Notes Common Retained Payable Stock Earnings + Event Account Titles for Retained Earnings Cash Land = + + 1. 2. + + + + 3. 4. + + + + + + + + 5. Totals 0 + 0 = 0 + 0 + Assets MARK'S CONSULTING SERVICES Accounting Equation for Year 2 Liabilities Stockholders' Equity Notes Common Retained Payable Stock Earnings + Event Account Titles for Retained Earnings Cash Land + + + + + + + + + + + Beg. bal 1. 2. 3. 4. 5. 6. Totals +++++ + + + 0 = 0 + 0 +