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Dakota Company experienced the following events during Year 2 1. Acquired $25,000 cash from the issue of common stock 2. Paid $25,000 cash to purchase land. 3. Borrowed $9,000 cash. 4. Provided services for $36,000 cash 5. Paid $1,000 cash for utilities expense. 6. Paid $28,000 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 $27.500. Required a. The January 1, Year 2. account balances are shown in the following accounting equation Record the eight events in the appropriate accounts under an accounting equation 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. Does the retained earning balance reflect the amount of cash that the company has available to pay dividends? d. Based on the December 31, Year 2, balance sheet, what is the largest cash dividend Dakota could pay? Reg A Req B1 Req B2 Req B3 Req B Prepare an income statement for the Year 2 accounting period. DAKOTA COMPANY Income Statement For the Year Ended December 31, Year 2 X X x x X X $ 0 Rad text indicates no response was expected in a celor a formula-based calculation is incorrect: no points deducted Req A Req B1 Req B2 Req B3 Req B4 Req C and D Prepare a year-end balance sheet for the Year 2 accounting period. DAKOTA COMPANY Balance Sheet As of December 31, Year 2 Assets X X X 0 Total assets Liabilities $ 0 Total liabilities Stockholders' Equity X x x x x Total stockholders' equity Total liabilities and stockholders' equity 0 0 S DAKOTA COMPANY Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flows from operating activities: X X X X X $ 0 Net cash flow from operating activities Cash flows from investing activities 0 Net cash flow from investing activities Cash flows from financing activities: X X X X X * * * Net cash flow from financing activities X X X Ending cash balance $ 0 Req A Req B1 Req B2 Reg B3 Req B4 Reg C and D C-1. Determine the percentage of assets that were provided by retained earnings. (Round you (i.e., 0.234 should be entered as 23.4).) c-2. Does the retained earning balance reflect the amount of cash that the company has avail d. Based on the December 31, Year 2, balance sheet, what is the largest cash dividend Dakota Percentage of assets % C- 1 C- 2. Does the retained earning balance reflect the cash for dividends? Cash dividend d

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