Problem 1-32 Preparing financial statements for two complete accounting cycles Susan's Consulting experienced the following transactions for 2014, its first year of operations, and 2015. Assume that all transactions involve the receipt or payment of cash. LO 1-2, 1-3, 1-5, 1-6 44 Chapter 1 CHECK FIGURES a. Net Income 2014: $40,000 b. Retained Earnings 2015: $80,000 Transactions for 2014 1. Acquired $50,000 by issuing common stock. 2. Received $100,000 cash for providing services to customers. 3. Borrowed $15,000 cash from creditors. 4. Paid expenses amounting to $60,000. 5. Purchased land for $40,000 cash. Transactions for 2015 Beginning account balances for 2015 are: Cash $65,000 Land 40,000 Notes payable 15,000 Common stock 50,000 Retained earnings 40,000 1. Acquired an additional $20,000 from the issue of common stock. Transactions for 2015 Beginning account balances for 2015 are: Cash Land Notes payable Common stock Retained earnings $65,000 40,000 15,000 50,000 40,000 1. Acquired an additional $20,000 from the issue of common stock. 2. Received $130,000 for providing services. 3. Paid $10,000 to creditors to reduce loan. 4. Paid expenses amounting to $75,000. 5. Paid a $15,000 dividend to the stockholders. 6. Determined that the market value of the land is $50,000. Required 2. Write an accounting equation, and 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. b. Prepare an income statement, statement of changes in stockholders' equity, year-end balance sheet, and statement of cash flows for each year. c. Determine the amount of cash that is in the Retained Earnings account at the end of 2014 and 2015. d. Examine the balance sheets for the two years. How did assets chand from 2014 to 2015? e. Determine the balance in the Retained Earnings account immediately after Event 2 in 2014 and in 2015 are recorded