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Marks Consulting experienced the following transactions for 2018, its first year of operations, and 2019. Assume that all transactions involve the receipt or payment of cash. Transactions for 2018

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 2019

Beginning account balances for 2019 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.

Prepare an income statement for the year 2018.

	MARK'S CONSULTING Income Statement For the Year Ended December 31, 2018 Account Payable/ Acccount Receivavle, cash/ common Stock $0

Prepare an income statement for the year 2019.

	MARK'S CONSULTING Income Statement For the Year Ended December 31, 2019 $0

Prepare a statement of changes in stockholders equity for the year 2018.

	MARK'S CONSULTING Statement of Changes in Stockholders Equity For the Year Ended December 31, 2018 Beginning common stock $0 Plus: Common stock issued 20,000 Ending common stock $20,000 Beginning retained earnings $0 Plus: Net income 13,000 Ending retained earnings 13,000 Total stockholders equity $33,000

Prepare a statement of changes in stockholders equity for the year 2019.

	MARK'S CONSULTING Statement of Changes in Stockholders Equity For the Year Ended December 31, 2019 Beginning common stock $20,000 Plus: Common stock issued 24,000 Ending common stock $44,000 Beginning retained earnings $13,000 Plus: Net income 23,500 Less: Dividends 3,000 Ending retained earnings 33,500 Total stockholders equity $77,500

Prepare a year-end balance sheet for the year 2018.

	MARK'S CONSULTING Balance Sheet As of December 31, 2018 Assets Cash Land Total assets $0 Liabilities Notes payable Total liabilities $0 Stockholders' Equity Common stock Retained earnings Total stockholders' equity 0 Total liabilities and stockholders' equity $0

Prepare a year-end balance sheet for the year 2019.

	MARK'S CONSULTING Balance Sheet As of December 31, 2019 Assets Cash Land Total assets $0 Liabilities Notes payable Total liabilities $0 Stockholders' Equity Common stock Retained earnings Total stockholders' equity 0 Total liabilities and stockholders' equity $0

Prepare a statement of cash flows for the year 2018. (Amounts to be deducted should be indicated with a minus sign.)

	MARK'S CONSULTING Statement of Cash Flows For the Year Ended December 31, 2018 Cash flows from operating activities: Net cash flow from operating activities $0 Cash flows from investing activities: Net cash flow from investing activities 0 Cash flows from financing activities: Net cash flow from financing activities 0 Ending cash balance $0

Prepare a statement of cash flows for the year 2019. (Amounts to be deducted should be indicated with a minus sign.)

	MARK'S CONSULTING Statement of Cash Flows For the Year Ended December 31, 2019 Cash flows from operating activities: Net cash flow from operating activities $0 Cash flows from investing activities Cash flows from financing activities: Net cash flow from financing activities 0 Ending cash balance $0

Determine the amount of cash that is in the retained earnings account at the end of 2018 and 2019.

Determine the balance in the Retained Earnings account immediately after Event 2 in 2018 and in 2019 are recorded.

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