please help me to find the correct answer
Dakota Company experienced the following events during Year 2.
- Acquired $30,000 cash from the issue of common stock.
- Paid $10,000 cash to purchase land.
- Borrowed $10,000 cash.
- Provided services for $50,000 cash.
- Paid $1,500 cash for utilities expense.
- Paid $35,000 cash for other operating expenses.
- Paid a $10,000 cash dividend to the stockholders.
- Determined that the market value of the land purchased in Event 2 is now $12,500.
Required a. The January 1, Year 2, general ledger account balances are shown in the following accounting equation. Record the eight events in the appropriate general ledger accounts. Record the amounts of revenue, expense, and dividends in the Retained Earnings column. Provide the appropriate titles for these accounts in the last column of the table. The first event is shown as an example. (Enter any decreases to account balances with a minus sign. Not all cells in the "Accounts Titles for Retained Earnings" column may require an input - leave cells blank if there is no corresponding Retained Earnings input needed.)
Answer is complete but not entirely correct. Assets Event Account Titles for Retained Earnings Cash + DAKOTA COMPANY Accounting Equation for Year 2 Liabilities + Stockholders' Equity Notes Common + Retained Payable Earnings = 17,000 + 13,000 30,000 Land + + Balance 1/1/Year 2 Stock 10,000 + 25,000 + + 10,000 + 10,000 + 15,000 30,000 (10,000) 10,000 50,000 (1,500) (35,000) (10,000) + + + + 50,000 Service revenue 1,500 X Utilities expense 35,000 Operating expense 10,000 Dividends + + + + Totals 48,500 + 35.000 + 40.000 109.500 + b-1. Prepare an income statement for the Year 2 accounting period. Answer is complete and correct. DAKOTA COMPANY Income Statement For the Year Ended December 31, Year 2 Service revenue $ 50,000 Utilities expense (1,500) Operating expense (35,000) Net income $ 13,500 b-2. Prepare a statement of changes in equity for the Year 2 accounting period. Answer is not complete. DAKOTA COMPANY Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 2 Beginning common stock $ 10,000 30,000 Ending common stock $ 40,000 Beginning retained earnings $ 13,000 13,500 15,000 X Ending retained earnings 11,500 Total stockholders' equity $ 51,500 b-3. Prepare a year-end balance sheet for the Year 2 accounting period. Answer is complete but not entirely correct. DAKOTA COMPANY Balance Sheet As of December 31, Year 2 Assets Cash $ 48,500 35,000 Land $ 83,500 Total assets Liabilities Notes payable $ 27,000 $ 27,000 Total liabilities Stockholders' Equity Common stock Retained earnings $ 40,000 109,500 149.500 Total stockholders' equity Total liabilities and stockholders' equity $ 176,500 b-4. Prepare a statement of cash flows for the Year 2 accounting period. (Amounts to be deducted should be indicated with a minus sign.) Answer is not complete. DAKOTA COMPANY Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flows from operating activities: $ 50,000 (1,500) (35,000) $ 13,500 Net cash flow from operating activities Cash flows from investing activities: Cash paid to purchase land $(10,000) (10,000) Net cash flow from investing activities Cash flows from financing activities: Cash receipts from stock issue Cash receipts from loan Cash payments for dividends $ 30,000 10,000 (10,000) 30.000 Net cash flow from financing activities Net increase in cash Plus: Beginning cash balance Ending cash balance 30,000 10,000 X $ 40,000 C-1. Determine the percentage of assets that were provided by retained earnings. (Round your answer to 1 decimal place.) Answer is complete but not entirely correct. Percentage of assets 5.7% % c-2. Does the retained earning balance reflect the amount of cash that the company has available to pay dividends? Yes No d. Based on the December 31, Year 2, balance sheet, what is the largest cash dividend Dakota could pay? Answer is complete but not entirely correct. Cash dividend $ 10,000
