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please help me solve this problem. I am lost on how to get the information for 2019. I input what i have so far but
please help me solve this problem. I am lost on how to get the information for 2019. I input what i have so far but can not figure out the rest and if what i have so far is correct
Mark's Consulting experienced the following transactions for 2018, its first year of operations, and 2019 Assume that all transactions involve the receipt or payment of cash. Transactions for 2018 1. Acquired $75,000 by issuing common stock. 2. Received $125,000 cash for providing services to customers. 3. Borrowed $20,000 cash from creditors. 4. Paid expenses amounting to $55,000. 5. Purchased land for $30,000 cash. Transactions for 2019 Beginning account balances for 2019 are: Cash Land Notes payable Common stock Retained earnings $135,000 30,000 20,000 75,000 70,000 1. Acquired an additional $25,000 from the issue of common stock. 2. Received $135,000 for providing services. 3. Paid $15,000 to creditors to reduce loan. 4. Paid expenses amounting to $70,000. 5. Paid a $12,500 dividend to the stockholders. 6. Determined that the market value of the land is $40,000. MARK'S CONSULTING Balance Sheet As of December 31, 2018 Assets Cash $ 135,000 Land 30,000 Total assets $ 165,000 Liabilities Notes payable $ 20,000 Total liabilities $ 20,000 Stockholders' Equity Common stock 75,000 70,000 Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 145,000 $ 165,000 MARK'S CONSULTING Balance Sheet As of December 31, 2019 Assets Cash Land 30,000 Total assets $ 30,000 Liabilities Notes payable $ 5,000 Total liabilities $ 5,000 Stockholders' Equity Common stock 27,500 Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 27,500 32,500 $ Step by Step Solution
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