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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 stockholders
2. 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