1.Acquired $30,000 cash from the issue of Common stock 2.Paid $12,000 cash to pu
ID: 2341138 • Letter: 1
Question
1.Acquired $30,000 cash from the issue of Common stock 2.Paid $12,000 cash to purchase land 3.Borrowed $10,000 cash 4.Provided services for $20,000 cash 5.Paid $1000 cash for utility expenses 6.Paid $15,000 cash for other operating expenses 7.Paid $2,000 cash dividend to the stockholders2. Prepare an income statement for the year to accounting period?
3. Prepare a statement of changes in Equity for the year to accounting period?
4. Prepare a year and balance sheet for the year to accounting period?
5. Prepare a statement of cash flow‘s for the year to accounting period?
6. Determine the percentage of assets that were provided by retained earnings?
7. Based on the December 31, year cute, balance sheet, what is the largest cash dividend to go to could pay? a. The January 1, Year 2, general ledger account balances are shown in the following accounting equation. Record the eight events in the s in the Retained Earnings column. e titles for these accounts in the last column of the table. The first event is shown as an example. (Enter any 2000 8,000 6,000+ 30,000 2,000+ NA 30,000+ 32,000 + 12.0001
Explanation / Answer
INCOME STATEMENT PARTICULARS AMOUNT AMOUNT PARTICULARS AMOUNT AMOUNT $ $ $ $ TO UTILITY EXPENSES 1,000 BY SERVICES 20,000 TO OPERATING EXPENSES 15,000 TO DIVIDENDS 2,000 NET INCOME 2,000 20,000 20,000 BALANCE SHEET LIABILITIES AMOUNT ASSETS AMOUNT $ $ COMMON STOCK 6,000 30,000 CASH 30,000 ADD: FRESH ISSUE 30,000 LAND 12,000 BORROWINGS 10,000 RETAINED EARNINGS 2,000 42,000 42,000 LEDGER ACCOUNTS 1 COMMON STOCK A/C PARTICULARS AMOUNT PARTICULARS AMOUNT $ $ BY CASH 30,000 TO BALANCE C/D 30,000 30,000 30,000 BY BALANCE B/D 30,000 2 LAND A/C PARTICULARS AMOUNT PARTICULARS AMOUNT $ $ TO CASH 12,000 BY BALANCE C/D 12,000 12,000 12,000 TO BALANCE B/D 12,000 - 3 UTILITY EXPENSES A/C PARTICULARS AMOUNT PARTICULARS AMOUNT $ $ TO CASH 1,000 BY BALANCE C/D 1,000 1,000 1,000 TO BALANCE B/D 1,000 - 4 OPERATING EXPENSES A/C PARTICULARS AMOUNT PARTICULARS AMOUNT $ $ TO CASH 15,000 BY BALANCE C/D 15,000 15,000 15,000 TO BALANCE B/D 15,000 - 5 DIVIDEND A/C PARTICULARS AMOUNT PARTICULARS AMOUNT $ $ TO CASH 2,000 BY BALANCE C/D 2,000 2,000 2,000 TO BALANCE B/D 2,000 - 6 SERVICES A/C PARTICULARS AMOUNT PARTICULARS AMOUNT $ $ BY CASH 20,000 TO BALANCE C/D 20,000 20,000 20,000 BY BALANCE B/D 20,000 7 CASH A/C PARTICULARS AMOUNT PARTICULARS AMOUNT $ $ TO SERVICES 20,000 BY UTILITY EXPENSES 1,000 TO COMMON STOCK 30,000 BY OPERATING EXPENSES 15,000 TO BORROWINGS 10,000 BY DIVIDENDS 2,000 BY LAND 12,000 BY BALANCE C/D 30,000 60,000 60,000 TO BALANCE B/D 30,000 8 BORROWINGS A/C PARTICULARS AMOUNT PARTICULARS AMOUNT $ $ BY CASH 10,000 TO BALANCE C/D 10,000 10,000 10,000 BY BALANCE B/D 10,000
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