Problem 1-32A (Static) Preparing financial statements for two complete accounting cycles LO 1-4, 1-7, 18,19 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 $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: 1. Acquired an additional $24,000 from the issue of common stock. 2. Recelved $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. Required a. Record the effects of each accounting event under the appropriate heaclings 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 Rotained Earnings account immediately after Event 2 in Year 1 and in Year 2 are recorded. 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 Earninas column. Provide appropriate titles for these accounts in the fast column of the table. (Enter any decreases to account CC sar accounting period. Prepare a year-end balance sheet for each year accounting period. \begin{tabular}{|l|l|l|} \hline \multicolumn{1}{|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 Total liabilities & & \\ \hline Stockholders' Equity & & $ \\ \hline \hline & & \\ \hline Total liabilities and stockholders' equity & & \\ \hline \end{tabular} Prepare a statement of cash flows for each year accounting period. (Cash outflows should be indicated Whit d MARK'S CONSULTING SERVICES \begin{tabular}{|l|l|l|} \hline \multicolumn{2}{|c|}{ Statement of Cash Flows } & \\ \hline Cash flows from operating activities: & & \\ \hline & & \\ \hline Net cash flow from operating activities & & \\ \hline Cash flows from investing activities: & & \\ \hline & & \\ \hline & & \\ \hline Net cash flow from investing activities & & \\ \hline Cash flows from financing activities: & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline Net cash flow from financing activities & & \\ \hline & & \\ \hline & & \\ \hline Ending cash balance & & \\ \hline \end{tabular} Determine the amount of cash in the retained earnings account at the end of Year 1 and Year 2. Determine the balance in the Retained Earnings account immediately after Event 2 in Year 1 and in Year 2 are recorded
