Mark's Consulting Services 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 $20,000 by issuing common stock. 2. Received $35,000 for providing services to customers 3. Borrowed $25,000 cash from creditors. 4. Pald expenses amounting to $22.000 5. Purchased land for $30,000 cash Transactions for Year 2 Beginning account balances for Year 2 are: Canh Land Notes payable Common stock Retained earnings $20,000 30,000 25,000 20,000 13,000 1. Acquired an additional $24,000 from the issue of common stock 2. Received $95,000 for providing services in Year 2. 3. Paid $15,000 to reduce notes payable. 4. Paid expenses amounting to $71,500. 5. Paid a $3,000 dividend to the stockholders. 6. Determined that the market value of the land is $47,000. 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-2. Prepare a statement of changes in stockholders' equity for each year occounting 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 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 and in Year 2 are recorded. Complete this question by entering your answers in the tabs below. Assets Event Cash 1. MARK'S CONSULTING SERVICES Accounting Equation for Year 1 Liabilities Stockholders' Equity Account Titles for Notes Common Retained Retained Earnings Land Payable Stock Earnings 20,000 + 35,000 Revenue 25,000 (22,000) Operating expense 30.000 30.000 25.000 + 20,000 13,000 + 2 + 20,000 35,000 - 25,000+ (22,000) (30,000) 28,000 - 3. 4. 5 Totals MARK'S CONSULTING SERVICES Accounting Equation for Year 2 Liabilities Stockholders' Equity Notes Common Retained Payable Stock Earnings Assets + Account Titlos for Retained Earnings Event Cash Land Bog bal 1. 2 24,000+ + + 95,000 (Revenue 3 24,000 - 95,000 (15.000) - (71.500) (3.000) - (15,000) 4 (71,500) Operating expense (3,000) 5 6. Total . - O 29 500 - (15,000) 20,500 24,000 MARK'S CONSULTING SERVICES Income Statement For the Year Ended December 31, Year 1 Service revenue $ 35,000 MARK'S CONSULTING SERVICES Income Statement For the Year Ended December 31, Year 2 Service revenue $ 95,000 MARK'S CONSULTING SERVICES Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 1 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 MARK'S CONSULTING SERVICES Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 2 Beginning common stock $ 20,000 Plus: Common stock issued 24,000 Ending common stock $ Beginning retained earnings $ 13,000 44,000 Ending retained earnings Total stockholders' equity 13,000 57,000 $ MARK'S CONSULTING SERVICES Balance Sheet As of December 31, Year 1 Assets $ 0 Total assets Liabilities $ 0 Total liabilities Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity $ 0 MARK'S CONSULTING SERVICES Balance Sheet As of December 31. Year 2 Assets $ Total assets Liabilities $ 0 Total liabilities Stockholders' Equity Cash flows from operating activities $ O Net cash flow from operating activities Cash flows from investing activities 0 Net cash flow from investing activities Cash flows from financing activities 0 Net cash flow from financing activities Ending cash balance $ 0 MARK'S CONSULTING SERVICES Statement of Cash Flows For the Year Ended December 31. Year 2 Cash flows from operating activities $ 0 Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities Net cash flow from financing activities 0 Endinn ra holonne Determine the amount of cash in the retained earnings account at the end of Year 1 and Year 2. Year 1 Year 2 Retained earnings Determine the balance in the Retained Earnings account immediately after Event 2 in Year 1 and in Year 2 are recorded. Year 1 Year 2 Retained eam