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Marks Consulting experienced the following transactions for 2000, its first year of operations, and 2001....

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Accounting

Marks Consulting experienced the following transactions for 2000, its first year of operations, and 2001. Assume that all transactions involve the receipt or payment of cash. Transactions for 2000

Acquired $20,000 by issuing common stock.

Received $35,000 cash for providing services to customers.

Borrowed $25,000 cash from creditors.

Paid expenses amounting to $22,000.

Purchased land for $30,000 cash.

Transactions for 2001

Beginning account balances for 2001 are:

Cash $ 28,000
Land 30,000
Notes payable 25,000
Common stock 20,000
Retained earnings 13,000

Acquired an additional $24,000 from the issue of common stock.

Received $95,000 for providing services.

Paid $15,000 to creditors to reduce loan.

Paid expenses amounting to $71,500.

Paid a $3,000 dividend to the stockholders.

Determined that the market value of the land is $47,000.

A). Determine the amount of cash that is in the retained earnings account at the end of 2000 and 2001

B). Determine the balance in the Retained Earnings account immediately after Event 2 in 2000 and in 2001 are recorded.
2000 2001
c. Retained earnings
e. Retained earnings

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