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Dakota Company experienced the following events during Year 2 1. Acquired $10,000 cash from the issue of common stock 2. Paid $25,500 cash to purchase land. 3. Borrowed $5,000 cash 4. Provided services for $60,000 cash 5. Paid $1.000 cash for utilities expense 6. Paid $38.500 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 $30,000 Required a. The January 1. Year 2. 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 Year 2 accounting period b-2. Prepare a statement of changes in equity for the Year 2 accounting period b-3. Prepare a year-end balance sheet for the Year 2 accounting period b-4. Prepare a statement of cash flows for the Year 2 accounting period C-1. Determine the percentage of assets that were provided by retained earnings c-2. Can you determine the cash in retained earnings? Rega Reg 1 Red B2 Red B Reg 4 Reg CI Reg 2 The January 1, Year 2. 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 title 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 mi sign. If there is no effect on the Account Titles for Retained Earnings, leave the cell bank. Not all cells require input.) Assets Event DAKOTA COMPANY Accounting Equation for Year 2 Liabilities Stockholders' Equity Notes Common Retained Land Payable Stock Earning 32.500 20 000 - 15 000 6.000 10 000 + Account des for Retained Earning Beg Cash 8500 - 10 000 1 2 3 4 5 5 7 8 Totals 18 500 32.500 20.000 25.000 6.000 Req A Req B1 Reg B2 Reg 83 Reg 14 Reg CI Reg C2 Prepare an income statement for the Year 2 accounting period. DAKOTA COMPANY Income Statement For the Year Ended December 31, Year 2 Reqa Req B2 > Req A Req B1 Reg B2 Req B3 Reg B4 Reqci Reg C2 Prepare a statement of changes in equity for the Year 2 accounting period. DAKOTA COMPANY Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 2 Beginning common stock 5 15,000 Plus Common stock issued 10.000 Ending common stock $ Beginning retained earnings 6,000 Plus Net Income 20.500 Less Dividends 2.000 Ending retained earnings Total stockholders' equity $ 25,000 24,500 49.500 Prepare a year-end balance sheet for the Year 2 accounting period. DAKOTA COMPANY Balance Sheet As of December 31, Year 2 Assets $ 0 Total assets Liabilities 0 Total liabilities Stockholders' Equity 0 Total stockholders' equity Total liabilities and stockholders' equity 5 0 Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flows from operating activities: 5 0 Net cash flow from operating activities Cash flows from investing activities Cash paid to purchase land 25.500 25,500 Net cash flow from investing activities Cash flows from financing activities Net cash flow from financing activities 0 Ending cash balance $

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