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 1Acquired $55,000 by issuing common stock.Received $105,000 cash for providing services to customers.Borrowed $16,000 cash from creditors.Paid expenses amounting to $59,000.Purchased land for $35,000 cash.Transactions for Year 2 Beginning account balances for Year 2 are: Cash$82,000 Land 35,000 Notes payable 16,000 Common stock 55,000 Retained earnings 46,000 Acquired an additional $21,000 from the issue of common stock.Received $131,000 for providing services.Paid $11,000 to creditors to reduce loan.Paid expenses amounting to $74,000.Paid a $14,500 dividend to the stockholders.b-4. Prepare a statement of cash flows for each year accounting period.c. Determine the amount of cash that is in the retained earnings account at the end of Year 1 and Year 2.

Name: Mark’s Consulting experienced the following transactions for Year 1, i
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Description: 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 1Acquired $55,000 by issuing common stock.Receiv

Statement of cash flow: It implies to one of the financial statements of the company that shows all…

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Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter2: Asset And Liability Valuation And Income Recognition

Section: Chapter Questions

Problem 20PC: Analyzing Transactions. Using the analytical framework, indicate the effect of the following related...

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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

Acquired $55,000 by issuing common stock.
Received $105,000 cash for providing services to customers.
Borrowed $16,000 cash from creditors.
Paid expenses amounting to $59,000.
Purchased land for $35,000 cash.

Transactions for Year 2

Beginning account balances for Year 2 are:


Cash	$	82,000
Land		35,000
Notes payable		16,000
Common stock		55,000
Retained earnings		46,000

Acquired an additional $21,000 from the issue of common stock.
Received $131,000 for providing services.
Paid $11,000 to creditors to reduce loan.
Paid expenses amounting to $74,000.
Paid a $14,500 dividend to the stockholders.

b-4. Prepare a statement of cash flows for each year accounting period.

c. Determine the amount of cash that is in the retained earnings account at the end of Year 1 and Year 2.

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