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Dakota Company experienced the following events during Year 2: 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, 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? Req A Req B1 Req B2 Req B3 Req B4 Req C and D 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. (Enter any decreases to account balances with a minus sign. Not all cells require input.) Show less A Assets DAKOTA COMPANY Accounting Equation for Year 2 Liabilities Stockholders' Equity Notes Retained + Common Stock + Payable Earnings = + Event Account Titles for Retained Earnings Cash + Land 2,000 + 12,000/= + 6,000 + 8,000 Balance 1/1/Year 2 1. 30,000 + = + 30,000 + 2. + + + 3. + = + + 4. + = + 5. + = + 6. + + + + + + + + 7. 8. ++ + + + Totals 32,000+ 12,000 0+ 36,000 + 8,000 Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Req B3 Req B4 Reg C and D Prepare an income statement for the Year 2 accounting period. DAKOTA COMPANY Income Statement For the Year Ended December 31, Year 2 $ 0 Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Req B3 Req B4 Req C and D 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 $ 0 Ending common stock Beginning retained earnings 0 Ending retained earnings Total stockholders' equity $ 0 Complete this question by entering your answers in the tabs below. Reg A Req B1 Req B2 Req B3 Req B4 Reg 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 Total assets $ 0 Liabilities Total liabilities $ 0 Stockholders' Equity 0 Total stockholders' equity Total liabilities and stockholders' equity $ 0 Req A Req B1 Req B2 Req B3 Req B4 Req C and D Prepare a statement of cash flows for the Year 2 accounting period. (Amounts to be deducted should minus sign.) *********** DAKOTA COMPANY Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flows from operating activities: Cash receipts from customers $ 20,000 Cash payment for utilities expense (1,000) Cash payments for other operating expense (15,000) $ 4,000 Net cash flow from operating activities Cash flows from investing activities: Cash paid to purchase land $ (12,000) (12,000) Net cash flow from investing activities Cash flows from financing activities: Cash receipts from stock issue Cash receipts from loan Cash payments for dividends $ 30,000 10,000 (2,000) 38,000 Net cash flow from financing activities Net increase in cash 30,000 Ending cash balance $ 30,000 Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Req B3 Req B4 Req C and D C-1. Determine the percentage of assets that were provided by retained earnings. (Round your (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 availa d. Based on the December 31, Year 2, balance sheet, what is the largest cash dividend Dakota % C-1. Percentage of assets c-2. Does the retained earning balance reflect the cash for dividends? d. Cash dividend

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