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.

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 $85,000 by issuing common stock. 2. Received $100,000 for providing services to customers. 3. Borrowed $16,000 cash from creditors. 4. Pald expenses amounting to $53,000. 5. Purchased land for $40,000 cash. Transactions for Year 2 Beginning account balances for Year 2 are: Cash Land Notes payable Common stock Retained earnings $100,000 40,000 16,000 85,000 47,000 1. Acquired an additional $26,000 from the issue of common stock. 2. Received $137,000 for providing services in Year 2. 3. Paid $11,000 to reduce notes payable. 4. Pald expenses amounting to $60,000. 5. Paid a $15,500 dividend to the stockholders. 6. Determined that the market value of the land is $50,000. Required a. Record the effects of each accounting event under the appropriate headings for each year. Record the amounts of revenue, 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 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. 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. Select "NA" if there is no effect on the "Account Titles for Retained Earnings".) Show less MARK'S CONSULTING SERVICES Accounting Equation for Year 1 Assets Liabilities + Stockholders' Equity Account Titles Event Cash - + Retained Land for Retained = Notes Common Payable Stock Earnings Earnings .+ 0 0.. Totals 01 0+ 0 MARK'S CONSULTING SERVICES Accounting Equation for Year 2 Assets Liabilities Stockholders' Equity Account Titles Cash + Land - Notes Common Retained for Retained Payable Stock Earnings Earnings Event + Beg bal. *000 GOOOOOO DOPO 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 Prepare a statement of changes in stockholders' equity for each year accounting period. (Amounts to be deducted should be indicated with minus sign.) MARK'S CONSULTING SERVICES 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 Prepare a year-end balance sheet for each year accounting period. MARK'S CONSULTING SERVICES Balance Sheet As of December 31, Year 1 Assets Total assets Liabilities Total abilities Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity MARK'S CONSULTING SERVICES Balance Sheet As of December 31, Year 2 Assets Total assets Liabilities Totallaties Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity Prepare a statement of cash flows for each year accounting period. (Cash outflows should be indicated with a minus sign.) MARK'S CONSULTING SERVICES 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 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 earnings