Dakota Company experienced the following events during 2018 1. Acquired $25,000
ID: 2533287 • Letter: D
Question
Dakota Company experienced the following events during 2018 1. Acquired $25,000 cash from the issue of common stock. 2. Paid $25,000 cash to purchase land 3. Borrowed $10,000 cash. 4. Provided services for $36,000 cash 5. Paid $1,000 cash for utilities expense 6. Paid $28,000 cash for other operating expenses 7. Paid a $2,000 cash dividend to the stockholders 8. Determined that the market value of the land purchased in Event 2 is now $27,500 Required a. The January 1, 2018, general ledger account balances are shown in the following accounting equation. Record the eight events in the appropriate general ledger accounts. Record the amounts of revenue, expense, and dividends in the Retained Earnings column. Provide the appropriate titles for these accounts in the last column of the table. The first event is shown as an example b-1. Prepare an income statement for the 2018 accounting period b-2. Prepare a statement of changes in equity for the 2018 accounting period b-3. Prepare a year-end balance sheet for the 2018 accounting period b-4. Prepare a statement of cash flows for the 2018 accounting period c. Determine the percentage of assets that were provided by retained earnings. Can you determine the cash in retained earnings? Complete this question by entering your answers in the tabs below Req A Req B1 Req B2 Req B3 Req B4 Req C The January 1, 2018, general ledger account balances are shown in the following accounting equation. Record the eight events in the appropriate general ledger accounts. Record the amounts of revenue, expense, and dividends in the Retained Earnings column. Provide the appropriate titles for these accounts in the last column of the table. The first event is shown as an example. (Enter any decreases to account balances with a minus sign. Select "NA" if there is no effect on the "Account Titles for Retained Earnings".)Explanation / Answer
Solution:
Assets Liabilities Stockholders' Equity Event Cash Land Notes payable Common Stock Retained Earnings Acct Titles for RE 5,500 20,000 10,000 15,500 1 25,000 25,000 NA 2 -25,000 25,000 NA 3 10,000 10,000 NA 4 36,000 36,000 Service revenue 5 -1,000 -1,000 Rent Expense 6 -28,000 -28,000 Operating Expense 7 -2,000 -2,000 Dividends 8 NA Total 20,500 45,000 10,000 35,000 20,500 Income Statement Service revenue 36,000 Rent Expense -1,000 Operating Expense -28,000 Net Income 7,000 Statement of changes in Equity Beginning common stock 10,000 Common stock issued 25,000 Ending common stock 35,000 Beginning retained earnings 15,500 Net income 7,000 Dividends -2,000 Ending retained earnings 20,500 Total Stockholders' Equity 55,500 Balance Sheet Assets Cash 20,500 land 45,000 Total Assets 65,500 Liabilities Notes payable 10,000 Total Liabilities 10,000 Stockholders' Equity Common stock 35,000 Retained Earnings 20,500 Total Stockholders' Equity 55,500 Total Liabilities Stockholders' Equity 65,500Related Questions
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