Question

Exercise 1.19

Dakota company experienced the following events during 2018:

1 Acquired 30,000 cash from 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 1,000 cash for utilities expenses

6.Paid 15,000 cash for other operating expenses

7.Paid 2000 cash dividend to stock holders.

8.Determined that the market value of land purchased at Event 2 is now 12,700

Exercise 1.23

Problem 1.33 *Mikes company experienced the following transactions for 2018, its first year of operations and 2019.Assume that all transactions involve the receipt or payment of cash   

Problem 1.34   

Chpter1 Probiem 1-33 Transactions for 2018 CHECK FIGURES a. Net Income 2018: $13,000 b. Retained Earnings 2019 1. Acquired $20,.000 by issuing common stock. 2. Received $35,000 cash for providing services to customers 3. Borrowed $25,000 cash from creditors. 4. Paid expenses amounting to $22,000. 5. Purchased land for $30,000 cash. $33,500 Transactions for 2019 Beginning account balances for 2019 are: Cash Land Notes payable Common stock Retained earnings $28,000 30,000 25,000 20.,000 3,000 I. Acquired an additional $24,000 from the issue of common stock. 2. Received $95,000 for providing services 3. Paid $15,000 to creditors to reduce loan. 4. Paid expenses amounting to $71,500. 5. Paid a $3,000 dividend to the stockholders. 6. Determined that the market value of the land is $47,000. Required a. Write an accounting equation, and record the effects of each accounting event under the appropo ate headings for each year. Record the amounts of revenue, expense, and dividends in the Retained Earnings column. Provide appropriate titles for these accounts in the last column of the table. Prepare an income statement, statement of changes in stockholders' equity, year-end balance b. sheet, and statement of cash flows for each year. e. Determine the amount of cash that is in the Retained Earnings account at the end of 2018 and 201 d. Compare the information provided by the income statement with the information provided by he statement of cash flows. Point out similarities and differences. Determine the balance in the Retained Earnings account immediately after Event 2 in 2018 i e. recorded and after Event 2 in 2019 is recorded. Problem 1-34 Interrelationships among financial statements Prat Corp. started the 2018 accounting period with $30,000 of assets (all cash), $12,000 of liabilibies LO 1-5, 1-7,1-8,1-9 CHECK FIGURE a. Net Income 2018: $9,550 Total Assets: $38.550 and S13,000 of common stock. During the year, the Retained Earnings account increased by $7,550 The bookkeeper reported that Prait paid cash expenses of $26,000 and paid a $2.000 the stockholders, but she could not find a record of the amount of cash that Pratt received for perf ing services. Pratt also paid $3,.000 cash to reduce the liability owed to the bank, and the basines acquired $4,000 of additional cash from the issue of common stock. Required a. Prepare an income statement, statement of changes in stockholders' equity,period-end blano sheet, and statement of cash flows for the 2018 accounting period. (Hint: Determine the anmo of beginning retained earnings before considering the effects of the current period events I might help to record all events under an accounting equation before preparing the b. Determine the percentage of total assets that were provided by creditors, investors, and carning e. Determine the balance in the Revenue, Expense, and Dividends accounts as of January 1. 2019. Round to three decimal places. LO 1-3, 1-4, 1-5, 16, 17, Problem 1-35 Recording events in a horizontal statements model 1-8, 1-9, 1-10 Maben Company was started on January 1,2018, and experienced the followngeentsuin i HECK FIGURES year of operation:

Answer 1

Problem 1.33
Amount in USD
Journal entries 2018
Particulars	Dr.	Cr.
Cash	20000		20000
Common stock		20000	-20000
			0
Cash	35000		35000
Revenue from services		35000	-35000
			0
Cash	25000		25000
Debt		25000	-25000
			0
Expenses	22000		22000
Cash		22000	-22000
			0
Land	30000		30000
Cash		30000	-30000
Journal entries 2019
	Dr.	Cr.
Cash	24000		24000
Common stock		24000	-24000
			0
Cash	95000		95000
Revenue from services		95000	-95000
			0
Debt	15000		15000
Cash		15000	-15000
			0
Expenses	71500		71500
Cash		71500	-71500
			0
Dividend	3000		3000
Cash		3000	-3000
increase in market value of land as US gaap doesn't allow revaluation

income statement
Particulars	2018	2019
Revenue from services	35000	95000
Expenses	22000	71500
Net profit	13000	23500
Dividend	0	3000
T/f to retained earnings	13000	20500

Balance Sheet
Assets	2018	2019	Liabilities	2018	2019
Cash	28000	57500	Common stock	20000	44000
Land	30000	30000	Retained earnings	13000	33500
			Debt	25000	10000
Total assets	58000	87500	Total liabilities	58000	87500