Problem 1-32A (Algo) Preparing financial statements for two complete accounting cycles LO 1-4, 1-7, 1-8, 19 Mark's Consulting Services 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 $85,000 by issuing common stock. 2. Received $135,000 for providing services to customers. 3. Borrowed $22,000 cash from creditors. 4. Paid expenses amounting to $53,000. 5. Purchased land for $35,000 cash. Transactions for Year 2 Beginning account balances for Year 2 are: 1. Acquired an additional $27,000 from the issue of common stock. 2. Received $137,000 for providing services in Year 2. 3. Paid $17,000 to reduce notes payable. 4. Paid expenses amounting to $68,000. 5. Paid a $11,500 dividend to the stockholders. 6. Determined that the market value of the land is $45,000. 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. b-1. Prepare an income statement for each year accounting period. b-2. Prepare a statement of changes in stockholders' equity for each year accounting period. b-3. Prepare a year-end balance sheet for each year accounting period. b-4. Prepare a statement of cash flows for each year accounting period. c. Determine the amount of cash in the retained earnings account at the end of Year 1 and Year 2. e. Determine the balance in the Retained Earnings account immediately after Event 2 in Year 1 and in Year 2 are recorded. Complete this question by entering your answers in the tabs below. Record the effects of each accounting event under the appropriate headings for each year. Record the amounts of revenue, expense, 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. (Enter any decreases to account balances with a minus sign.) Prepare an income statement for each year accounting period. \begin{tabular}{|l|l|l|} \hline \multicolumn{2}{|c|}{ MARK'S CONSULTING SERVICES } \\ \hline \multicolumn{1}{|c|}{ As of December 31, Year 1 } & \\ \hline Assets & & \\ \hline & & \\ \hline Total assets & & \\ \hline Liabilities & & \\ \hline & & \\ \hline & & \\ \hline Total liabilities & & \\ \hline Stockholders' Equity & & \\ \hline & & \\ \hline Ass of December 31, Year 2 & \\ \hline Total liabilities and stockholders' equity & & \\ \hline MARK'S consuLTING SERVICES & \\ \hline \multicolumn{1}{|c|}{ Balance Sheet } & \\ \hline \end{tabular} Complete this question by entering your answers in the tabs below. Determine the amount of cash in the retained earnings account at the end of Year 1 and Year 2. Complete this question by entering your answers in the tabs below. Determine the balance in the Retained Earnings account immediately after Event 2 in Year 1 and in Year 2 are r
