Required information Problem 1-33 Preparing financial statements for two complete accounting cycles LO 1-3, 1-4,1-5,1-7,1-8, 1-9 The following information applies to the questions displayed below.] Mark's Consulting experienced the following transactions for 2018, its first year of operations, and 2019 Assume that all transactions involve the receipt or payment of cash Transactions for 2018 1. Acquired $70,000 by issuing common stock. 2. Received $115,000 cash for providing services to customers 3. Borrowed $19,000 cash from creditors 4. Paid expenses amounting to $56,000 5. Purchased land for $40,000 cash. Transactions for 2019 Beginning account balances for 2019 are $108,000 40,000 Notes payable 19,000 70,000 Cash Land Common stock Retained 59,000 earnings 1. Acquired an additional $23,000 from the issue of common stock. 2. Received $134,000 for providing services. 3. Paid $14,000 to creditors to reduce loan. 4. Paid expenses amounting to $63,000 5. Paid a $13,000 dividend to the stockholders. 6. Determined that the market value of the land is $50,000 b-2. Prepare a statement of changes in stockholders' equity for each year accounting period Complete this question by entering your answers in the tabs below. SE 2018 SE 2019 Prepare a statement of changes in stockholders' equity for the year 2018. MARK'S CONSULTING Statement of Changes in Stockholders' Equity For the Year Ended December 31, 2018 Ending common stock Beginning retained 0 earnings Ending retained earnings Total stockholders' equity 0 0 SE 2018 SE 2019 b-3. Prepare a year-end balance sheet for each year accounting period Complete this question by entering your answers in the tabs below. Bal Sheet Bal Sheet 2018 2019 Prepare a year-end balance sheet for the year 2018 MARK'S CONSULTING Balance Sheet As of December 31, 2018 Assets Total assets 0 Liabilities Total liabilities 0 Stockholders' Equity Total stockholders' equity 0 Total liabilities and 0 stockholders' equity Bal Sheet 2019 > Bal Sheet 2018 b-4. Prepare a statement of cash flows for each year accounting period Complete this question by entering your answers in the tabs below. Stmt CF Stmt CF 2018 2019 Prepare a statement of cash flows for the year 2018. (Amounts to be deducted should be indicated with a minus sign.) MARK'S CONSULTING Statement of Cash Flows For the Year Ended December 31,2018 Cash flows from operating activities Net cash flow from operating activities 0 Cash flows from investing activities Net cash flow from investing activities 0 Cash flows from financing activities Net cash flow from financing activities 0 0 Ending cash balance Stmt CF 2018 Stmt CF 2019 c. Determine the amount of cash that is in the retained earnings account at the end of 2018 and 2019. e. Determine the balance in the Retained Earnings account immediately after Event 2 in 2018 and in 2019 are recorded 2018 2019 Retained earnings Retained earnings
