Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help with this question!! a 2 part question Required information Mark's Consulting experienced the following transactions for Year 1, its first year of operations,

Please help with this question!! a 2 part question
image text in transcribed
image text in transcribed
image text in transcribed
Required information Mark's Consulting 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. Paid expenses amounting to $22,000, 5. Purchased land for $30,000 cash. Transactions for Year 2 Beginning account balances for Year 2 are: Cash Land Noten payable Common stock Retained earnings $ 28,000 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. Pald $15,000 to reduce notes payable. 4. Paid expenses amounting to $71,500. 5. Pald a $3,000 dividend to the stockholders. 6. Determined that the market value of the land is $47000, Saved Hel 3. Pald $15,000 to reduce notes payable. 4. Pald expenses amounting to $71,500. 5. Pald 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. (Enter any decreases to account balances with a minus sign. Not all cells require input.) Assets MARK'S CONSULTING Accounting Equation for Year 1 Liabilities Stockholders' Equity Notes + Common Stock + Retained Payable Earnings Event Account Titles for Retained Earnings Cash Land 1 2 + + 3 + + 4 5. Totals . Uds MARK'S CONSULTING Accounting Equation for Year 2 Liabilities Stockholders' Equity Notes Retained + Common Stock + Payable Earnings + Assets Account Titles for Retained Earnings Event Cash + Land Beg bal 1. 2 3 + 5 6 + Totals

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing A Business Risk Approach

Authors: Larry E. Rittenberg, Karla Johnstone, Audrey Gramling

7th Edition

0324663722, 978-0324663723

More Books

Students also viewed these Accounting questions