Question

Dakota Company experienced the following events during 2018: 1. Acquired $15,000 cash from the issue of common stock. 2. Paid $15.000 cash to purchase land. 3. Borrowed $5,000 cash. 4. Provided services for $55,000 cash. 5. Paid $2,000 cash for utilities expense. 6. Paid $45.000 cash for other operating expenses. 7. Paid a $1.000 cash dividend to the stockholders. 8. Determined that the market value of the land purchased in Event 2 is now $16,000. 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. Reg A Reg 2 Red 33 Reg 14 Reg C The January 1, 2018, general ledger account balances are shown in the following accounting equation Record the sight 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) < Prex 4 of 5 Next > MacBook Air

Answer 1

a.

DAKOTA COMPANY
Accounting Equation for 2018
Event	Assets		=	Liabilities	+	Stockholders' Equity		Account Titles for Retained Earnings
	Cash	Land	=	Notes Payable	+	Common Stock	Retained Earnings
Bal. 1/1/2018	14500	10000	=	10000	+	10000	4500
1	15000		=		+	15000		NA
2	-15000	15000	=		+			NA
3	5000		=	5000	+			NA
4	55000		=		+		55000	Service revenue
5	-2000		=		+		-2000	Utilities expense
6	-45000		=		+		-45000	Operating expenses
7	-1000		=		+		-1000	Dividends
8			=		+			NA
Totals	26500	25000	=	15000	+	25000	11500

b-1.

DAKOTA COMPANY
Income Statement
For the Year Ended December 31, 2018
Service revenue	55000
Utilities expense	2000
Other operating expense	45000
Net income	8000

b-2.

DAKOTA COMPANY
Statement of Changes in Stockholders' Equity
For the Year Ended December 31, 2018
Beginning common stock	10000
Add: Additional issued	15000
Ending common stock		25000
Beginning retained earnings	4500
Add: Net income	8000
Less: Dividends	1000
Ending retained earnings		11500
Total stockholders' equity		36500

b-3.

DAKOTA COMPANY
Balance Sheet
As of December 31, 2018
Assets
Cash	26500
Land	25000
Total assets		51500
Liabilities
Notes payable	15000
Total liabilities		15000
Stockholders' Equity
Common stock	25000
Retained earnings	11500
Total stockholders' equity		36500
Total liabilities and stockholders' equity		51500

Per HOMEWORKLIB RULES the first 4 parts have been answered. Please post the remaining separately. Thank you.