Transactions

Year One

1). Successfully raised cash of $450,000 for equity.

2). Purchased land for $100,000 using $10,000 in cash and 90,000 in Debt

3). Incurred contractor maintenance expenses of $20,000 on account to be paid next year.

4). Received rent revenue of $120,000 in cash.

5) Incurred property taxes of $15,000 and paid in cash.

6). Other repair expenses totaled $25,000 on account to be paid in a future year.

7) Interest on the loan is 10% and paid in the current year

8) Purchased equipment on day one with cash for $60,000

9) The equipment is depreciated over 5 years straight-line

Year Two

1). Rent revenues were $140,000, received in cash

2). Incurred contractor maintenance expense was $35,000, to be paid next year

3). Incurred property taxes of $18,000 and paid cash

4). Paid interest on the loan incurred for year two at the end of the year.

5). Sold the $60,000 asset for $70,000 at the end of year two. Received cash for the purchase.

6). Paid last years contractor for maintenance $20,000 in cash.

Prepare journal entries, and the related income statements, balance sheets and cash flow statements on a comparative basis for both years.