Homework Answers
Answer -
a. Answer -
| 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 | $5500 | + | $20000 | = | $0 | + | $10000 | + | $15500 | |
| 1 | $25000 | + | = | + | $25000 | + | NA | |||
| 2 | -$25000 | + | $25000 | = | + | + | NA | |||
| 3 | $10000 | + | = | $10000 | + | + | NA | |||
| 4 | $36000 | + | = | + | + | $36000 | Service revenue | |||
| 5 | -$1000 | + | = | + | + | -$1000 | Utilities expense | |||
| 6 | -$28000 | + | = | + | + | -$28000 | Other operating expenses | |||
| 7 | -$2000 | + | = | + | + | -$2000 | Dividends | |||
| 8 | + | = | + | + | NA | |||||
| Total | $20500 | + | $45000 | = | $10000 | + | $35000 | + | $20500 | |
Calculation:
1. Acquired $25000 cash from issue of common stock, its increase cash balance of company by $25000 and also increase common stock by $25000.
2. Paid $25000 cash to purchase land, its decrease cash balance of company by $10000 and increase land value by $25000.
3. Borrowed $10000 cash, its increase cash balance by $10000 and also increase notes payable by $10000
4. Provided services for $36000 cash, its increase cash balance by $36000 and increase retained earnings by $36000 (Providing services are generating revenue for company).
5. Paid $1000 cash for utilities expense, its decrease cash balance by $1000 and also decrease retained earnings by $1000.
6. Paid $28000 cash for other operating expenses, its decrease cash balance by $28000 and also decrease retained earnings by $28000.
7. Paid a $2000 cash dividend to the stockholders, its decrease cash balance by $2000 and also decrease retained earnings by $2000 (Payment for dividends are expense for company).
b1. Answer -
| Dakota Company | |
| Income Statement | |
| For the Year Ended December 31, 2018 | |
| Service revenue | $36000 |
| Less: Utilities expense | -$1000 |
| Less: Other operating expenses | -$28000 |
| Net income | $7000 |
Calculation:
Net income = Service revenue - (Utilities expense + Other operating expenses)
= $36000 - ($1000 + $28000)
= $7000
b2. Answer -
| Dakota Company | ||
| Statement of Changes in Stockholders Equity | ||
| For the Year Ended December 31, 2018 | ||
| Beginning common stock | $10000 | |
| Add: Common stock issued | $25000 | |
| Ending common stock | $35000 | |
| Beginning retained earnings | $15500 | |
| Add: Net income | $7000 | |
| Less: Dividends paid | -$2000 | |
| Ending retained earnings | $20500 | |
| Total stockholders equity | $55500 | |
Calculation:
1. Ending common stock = Beginning common stock + Issued common stock
= $10000 + $25000
= $35000
2. Ending retained earnings = Beginning retained earnings + Net income - Dividends paid
= $15500 + $7000 - $2000
= $20500
3. Total stockholders equity = Ending common stock + Ending retained earnings
= $35000 + $20500
= $55500
b3. Answer -
| Dakota Company | ||
| Balance Sheet | ||
| As of December 31, 2018 | ||
| Assets: | ||
| Cash | $20500 | |
| Land | $45000 | |
| Total assets | $65500 | |
| Liabilities: | ||
| Notes payable | $10000 | |
| Total liabilities | $10000 | |
| Stockholders equity: | ||
| Common stock | $35000 | |
| Retained earnings | $20500 | |
| Total stockholders equity | $55500 | |
| Total liabilities and stockholders equity | $65500 | |
Calculation:
Land = Beginning balance + Purchase of land
= $20000 + $25000
= $45000
b4. Answer -
| Dakota Company | ||
| Statement of Cash Flows | ||
| For the Year Ended December 31, 2018 | ||
| Cash flows from operating activities: | ||
| Cash receipts from customers (Service revenue) | $36000 | |
| Cash paid for utilities expense | -$1000 | |
| Cash paid for other operating expenses | -$28000 | |
| Net cash flow from operating activities | $7000 | |
| Cash flows from investing activities: | ||
| Cash paid for purchase land | -$25000 | |
| Net cash flow from investing activities | -$25000 | |
| Cash flows from financing activities: | ||
| Proceeds from issuance of common stock | $25000 | |
| Proceeds from issuance of notes payable | $10000 | |
| Cash payment for dividends | -$2000 | |
| Net cash flow from financing activities | $33000 | |
| Net increase in cash | $15000 | |
| Add: Beginning cash balance | $5500 | |
| Ending cash balance | $20500 | |
Note - Proceeds from issuance of notes payable = Borrowed $10000 cash by issuing note.
c. Answer -
| Percentage of assets | 31.30% |
| Can you determine the cash in retained earnings? | No |
Calculation:
1. Percentage of assets provided by retained earnings
= (Retained earnings / Total assets) * 100
= ($20500 / $65500) * 100
= 31.30%
2. Cash cannot be directly determined or traced in retained earnings. Retained earnings are used to pay liabilities and expenses or to purchase fixed assets for a company.
Add Answer to:
Dakota Company experienced the following events during 2018: 1. Acquired $25.000 cash from the issue of...
Dakota Company experienced the following events during 2018: 1. Acquired $25.000 cash from the issue of...
Dakota Company experienced the following events during 2018: 1. Acquired $25.000 cash from the issue of common stock. 2 Pald $25,000 cash to purchase land. 3. Borrowed $10,000 cash. 4. Provided services for $36.000 cash. 5. Pald $1,000 cash for utilities expense. 6. Paid $28.000 cash for other operating expenses. 7. Pald 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,...
Dakota Company experienced the following events during 2018: 1. Acquired $25,000 cash from the issue of...
Dakota Company experienced the following events during 2018: 1. Acquired $25,000 cash from the issue of common 2. Paid $10,000 cash to purchase land. 3. Borrowed $10,000 cash. 4. Provided services for $35,000 cash. 5. Paid $2,000 cash for utilities expense. 6. Pald $20,000 cash for other operating expenses. 7. Paid a $4,000 cash dividend to the stockholders. 8. Determined that the market value of the land purchased in Event 2 is now $15,000. Required a. The January 1, 2018,...
Dakota Company experienced the following events during 2018: 1. Acquired $15,000 cash from the issue of...
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,...
Dakota Company experienced the following events during 2018: Acquired $15,000 cash from the issue of common...
Dakota Company experienced the following events during 2018:
Acquired $15,000 cash from the issue of common stock.
Paid $15,000 cash to purchase land.
Borrowed $5,000 cash.
Provided services for $55,000 cash.
Paid $2,000 cash for utilities expense.
Paid $45,000 cash for other operating expenses.
Paid a $1,000 cash dividend to the stockholders.
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...
Dakota Company experienced the following events during 2018: 1. Acquired $25,000 cash from the issue of...
Dakota Company experienced the following events during 2018: 1. Acquired $25,000 cash from the issue of common stock. 2. Paid $20,000 cash to purchase land. 3. Borrowed $20,000 cash. 4. Provided services for $60,000 cash. 5. Paid $2,000 cash for utilities expense. 6. Paid $40,000 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,...
Dakota Company experienced the following events during 2018: 1. Acquired $20,000 cash from the issue of...
Dakota Company experienced the following events during 2018: 1. Acquired $20,000 cash from the issue of common stock. 2. Pald $25,000 cash to purchase land. 3. Borrowed $10,000 cash. 4. Provided services for $42,500 cash. 5. Paid $1,500 cash for utilities expense. 6. Pald $30,000 cash for other operating expenses. 7. Pald a $3,000 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,...
I need all parts to this problem. Sheet by sheet. Dakota Company experienced the following events...
I need all parts to this problem. Sheet by sheet.
Dakota Company experienced the following events during 2018 1. Acquired $20,000 cash from the issue of common stock 2. Paid $22,500 cash to purchase land. 3. Borrowed $10,000 cash 4. Provided services for $30,000 cash. 5. Paid $2,000 cash for utilities expense. 6. Paid $20,000 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...
Che 1. Acquired $30,000 cash from the issue of common stock 2. Paid $12,000 cash to...
Che 1. Acquired $30,000 cash from the 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 expense. 6. Paid $15,000 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 $12,700. Required a. The January 1, Year 2. general ledger account balances are...
Mark's Consulting experienced the following transactions for Year 1, its first year of operations, and Year...
Mark's Consulting experienced the following transactions for Year 1, its first year of operations, and Year 2. Assume that all transactions involve the receipt or payment of cash. Transactions for Year 1 1. Acquired $80,000 by issuing common stock. 2. Received $130,000 cash for providing services to customers. 3. Borrowed $21,000 cash from creditors. 4. Pald expenses amounting to $54,000. 5. Purchased land for $40,000 cash. Transactions for Year 2 Beginning account balances for Year 2 are: Cash Land Notes...
Milea Inc, experienced the following events in 2018, Its first year of operations: 1. Received $15,000...
Milea Inc, experienced the following events in 2018, Its first year of operations: 1. Received $15,000 cash from the issue of common stock. 2. Performed services on account for $45,000. 3. Paid the utility expense of $1,100. 4. Collected $32,920 of the accounts receivable. 5. Recorded $9,500 of accrued salaries at the end of the year. 6. Paid a $950 cash dividend to the stockholders. b. Prepare the income statement, statement of changes in stockholders' equilty, balance sheet, and statement...
Dakota Company experienced the following events during 2018: 1. Acquired $25.000 cash from the issue of common stock. 2 Pald $25,000 cash to purchase land. 3. Borrowed $10,000 cash. 4. Provided services for $36.000 cash. 5. Pald $1,000 cash for utilities expense. 6. Paid $28.000 cash for other operating expenses. 7. Pald 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,...
Dakota Company experienced the following events during 2018: 1. Acquired $25,000 cash from the issue of common 2. Paid $10,000 cash to purchase land. 3. Borrowed $10,000 cash. 4. Provided services for $35,000 cash. 5. Paid $2,000 cash for utilities expense. 6. Pald $20,000 cash for other operating expenses. 7. Paid a $4,000 cash dividend to the stockholders. 8. Determined that the market value of the land purchased in Event 2 is now $15,000. Required a. The January 1, 2018,...
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,...
Dakota Company experienced the following events during 2018:
Acquired $15,000 cash from the issue of common stock.
Paid $15,000 cash to purchase land.
Borrowed $5,000 cash.
Provided services for $55,000 cash.
Paid $2,000 cash for utilities expense.
Paid $45,000 cash for other operating expenses.
Paid a $1,000 cash dividend to the stockholders.
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...
Dakota Company experienced the following events during 2018: 1. Acquired $25,000 cash from the issue of common stock. 2. Paid $20,000 cash to purchase land. 3. Borrowed $20,000 cash. 4. Provided services for $60,000 cash. 5. Paid $2,000 cash for utilities expense. 6. Paid $40,000 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,...
Dakota Company experienced the following events during 2018: 1. Acquired $20,000 cash from the issue of common stock. 2. Pald $25,000 cash to purchase land. 3. Borrowed $10,000 cash. 4. Provided services for $42,500 cash. 5. Paid $1,500 cash for utilities expense. 6. Pald $30,000 cash for other operating expenses. 7. Pald a $3,000 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,...
I need all parts to this problem. Sheet by sheet.
Dakota Company experienced the following events during 2018 1. Acquired $20,000 cash from the issue of common stock 2. Paid $22,500 cash to purchase land. 3. Borrowed $10,000 cash 4. Provided services for $30,000 cash. 5. Paid $2,000 cash for utilities expense. 6. Paid $20,000 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...
Che 1. Acquired $30,000 cash from the 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 expense. 6. Paid $15,000 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 $12,700. Required a. The January 1, Year 2. general ledger account balances are...
Mark's Consulting experienced the following transactions for Year 1, its first year of operations, and Year 2. Assume that all transactions involve the receipt or payment of cash. Transactions for Year 1 1. Acquired $80,000 by issuing common stock. 2. Received $130,000 cash for providing services to customers. 3. Borrowed $21,000 cash from creditors. 4. Pald expenses amounting to $54,000. 5. Purchased land for $40,000 cash. Transactions for Year 2 Beginning account balances for Year 2 are: Cash Land Notes...
Milea Inc, experienced the following events in 2018, Its first year of operations: 1. Received $15,000 cash from the issue of common stock. 2. Performed services on account for $45,000. 3. Paid the utility expense of $1,100. 4. Collected $32,920 of the accounts receivable. 5. Recorded $9,500 of accrued salaries at the end of the year. 6. Paid a $950 cash dividend to the stockholders. b. Prepare the income statement, statement of changes in stockholders' equilty, balance sheet, and statement...
Most questions answered within 3 hours.
-
Accent Software faces the following conditions. All of these
support Accent’s use of a market-penetration pricing...
asked 12 minutes ago -
A mathematically inclined friend emails you the following
instructions: "Meet me in the cafeteria the first...
asked 14 minutes ago -
A monopoly sells in two countries . The demand curves in the two
countries are p1...
asked 1 hour ago -
A .15kg rubber ball is bounced off a wall. Before hitting the
wall, the ball moves...
asked 1 hour ago -
A manufacturing company preparing to build a new plant is
considering three potential locations for it....
asked 1 hour ago -
B. If compound Y has approximately the same values of solubility
in toluene as compound X,...
asked 2 hours ago -
Oscar Inc. has inventory in Japan valued at 39,051,000 Yen one
year ago. One year ago...
asked 2 hours ago -
If Canada suffered from "fundamental disequilibrium," and its
government choose not to devalue its currency, a...
asked 2 hours ago -
4. How many input & output Key Value Pairs are passed into,
and emitted out of...
asked 2 hours ago -
Why would your heart not function well if constructed of
skeletal muscle? What is the particular...
asked 2 hours ago -
Please respond to this essay question in full essay form for
Chemistry 1102 Organic and Biochemistry:...
asked 2 hours ago -
Determine the head loss and velocity of flow in a water supply main
of 15.0 cm...
asked 3 hours ago