Question

Question 2 (of 11) 2. 10.00 points Dakota Company experienced the following events during 2016. 1. Acquired $20,000 cash from the issue of common stock. 2. Paid $20,000 cash to purchase land. 3. Borrowed $5,000 cash 4. Provided services for $40,000 cash. 5. Paid $1,000 cash for utilities expense. 6. Paid $20,000 cash for other operating expenses. 7. Paid a $5,000 cash dividend to the stockholders. 8. Determined that the market value of the land purchased in Event 2 is now $25,000. Required a. The January 1, 2016, 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 account balances with a minus sign. Select"NA" if there is no effect on the Account Titles for Retained Earnings".) DAKOTA COMPANY Accounting Equation for 2016 Assets LiabilitiesStockholders' Equity Account Tit Retained Retained Ea Earnings Event Land Notes |=| Common Stock Payable Balance 1/1/2016 | 8,000- 20.000に1 이+1 15,000|-| 13,000|

Answer 1

1-
	Assets			=	Liabilities	+	Shareholders equity
date	cash	+	land		Notes payable	+	Common stock	+	retained earning	Account titles for retained earnings
1/1/2016	8000	+	20000	=	0	+	15000	+	13000	NA
1-	20000	+		=		+	20000	+		NA
2-	-20000	+	20000	=		+		+		NA
3-	5000	+		=	5000	+		+		NA
4-	40000	+		=		+		+	40000	revenue from service
5-	-1000	+		=		+		+	-1000	utilities expense
6-	-20000	+		=		+		+	-20000	operating expense
7-	-5000	+		=		+		+	-5000	dividend
8-	NA	+	NA	=	NA	+	NA	+	NA	NA
total	27000		40000		5000		35000		27000

Income statement
revenue from service		40000
less expenses
utilities expense		1000
other operating expense		20000
net income		19000
statement of changes in shareholders equity
beginning balance		15000
issuance of common stock		20000
year end balance			35000
beginning retained earning	13000
add net income	19000
less dividend paid	5000
year end retained earning			27000
total stockholder equity			62000
balance sheet
Assets
cash		27000
land		40000
total assets		67000
Liabilities and shareholders equity
Notes payable	5000
total liability		5000
Shareholders equity
common stock	35000
retained earnings	27000
shareholders equity		62000
Liabilities and shareholders equity		67000
cash flow statement
cash flow from operating activities
collection from service revenue		40000
payment to other operating expenses		-20000
payment to utilities expense		-1000
cash flow from operating activities			19000
cash flow from investing activities
purchase of land			-20000
cash flow from financing activities
loan		5000
issuance of common stock		20000
dividend paid		-5000
cash flow from financing activities			20000
net cash flow during the year			19000
add beginning balance			8000
Year end cash balance			27000