Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please help with this whole question! Required information Mark's Consulting experienced the following transactions for Year 1, its first year of operations, and Year 2.
Please help with this whole question!
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. Recelved $35,000 for providing services to customers. 3. Borrowed $25,000 cash from creditors. 4. Pald 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 Notes 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. Paid $15,000 to reduce notes payable. 4. Paid expenses amounting to $71,500, 5. Paid a $3,000 dividend to the stockholders. 6. Determined that the market value of the land is $47.000. 1. Acquired an additional $24,000 from the issue of common stock. 2. Received $95,000 for providing services in Year 2. 3. Paid $15,000 to reduce notes payable. 4. Paid expenses amounting to $71,500. 5. Paid a $3,000 dividend to the stockholders. 6. Determined that the market value of the land is $47,000. b-1. Prepare an income statement for Year 1 and Year 2. MARK'S CONSULTING Income Statement For the Period Ended December 31, Year 1 & Year 2 Year 1 Year 2 ces b-2. Prepare a statement of changes in stockholders' equity for Year 1 and Yes b-2. Prepare a statement of changes in stockholders' equity for Year 1 and Year 2. MARK'S CONSULTING Statement of Changes in Stockholders' Equity For the Period Ended December 31, Year 1 & Year 2 Year 1 Year 2 Beginning common stock Ending common stock Beginning retained earnings Ending retained earnings Total stockholders' equity b-3. Prepare a year-end balance sheet for Year 1 and Year 2. Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started