Question

Required information [The following information applies to the questions displayed below.) Mark's Consulting experienced the following transactions for 2018, its first year of operations, and 2019. Assume that all transactions involve the receipt or payment of cash. Transactions for 2018 1. Acquired $70,000 by issuing common stock 2. Received $120,000 cash for providing services to customers. 3. Borrowed $19,000 cash from creditors. 4. Paid expenses amounting to $56,000. 5. Purchased land for $35,000 cash. Transactions for 2019 Beginning account balances for 2019 are: Cash Land Notes payable Common stock Retained earnings $118,000 35,000 19,000 70,000 64,000 1. Acquired an additional $24,000 from the issue of common stock. 2. Received $134,000 for providing services. 3. Paid $14,000 to creditors to reduce loan. 4. Paid expenses amounting to $71,000. 5. Paid a $13,000 dividend to the stockholders. 6. Determined that the market value of the land is $45,000.

Answer 1

Answert b-1) MARK's Consulting Income statement for the year ended Dec 31, 2018. Particulars Amount Revences $120,000 Less!- Expenses $56,000 Net Income $ 64,000 1b-8) Mark's consulting Income statement for the year ended Dec 31, 2019 Particelars Amount Revenue $ 134,000 Les - Expeg. $ 71,000 Net Income $63.000