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

xurise 1-1 Required a. The January 1,2018, general ledger account balances are shown in the following accounting equa s of tion. Record the eight events in the appropriate general ledger accounts. Record the amount 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. DAKOTA COMPANY Accounting Equation Acct. Titles for RE Liabilities Stockholders' Equity Common Retained Stock Earnings Event Assets Notes Payable Cash Land Balance 1/1/20182,00012,000 6,000 30,000 8,000 30,000 Prepare an income statement, statement of changes in equity, year-end balance sheet, and state- ment of cash flows for the 2018 accounting period Determine the percentage of assets that were provided by retained earnings. Round to three deci- mal places. How much cash is in the retained earnings account? b. c.

Answer 1