Marks 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 Acquired $20,000 by issuing common stock Received $35,000 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 Year 2 Beginning account balances for Year 2 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 in Year 2 Paid $15,000 to reduce notes payable 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 Required 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 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

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Marks Consulting Services experienced the following transactions for Year 1, its first year of operations, and Year 2. Assume that all transactions involve the receipt

Marks 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

Acquired $20,000 by issuing common stock.
Received $35,000 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 Year 2 Beginning account balances for Year 2 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 in Year 2.
Paid $15,000 to reduce notes payable.
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.

Required 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 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.