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Mark's Consulting experienced the following transactions for 2018, its first year of operations, and 2019.Assume...

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Accounting

Mark's 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.

Prepare a year-end balance sheet for each year accounting period.

Transactions for 2018

  1. Acquired $65,000 by issuing common stock.
  2. Received $115,000 cash for providing services to customers.
  3. Borrowed $18,000 cash from creditors.
  4. Paid expenses amounting to $57,000.
  5. Purchased land for $40,000 cash.

Transactions for 2019

Beginning account balances for 2019 are:

Cash$101,000Land40,000Notes payable18,000Common stock65,000Retained earnings58,000

  1. Acquired an additional $23,000 from the issue of common stock.
  2. Received $133,000 for providingservices.
  3. Paid $13,000 to creditors to reduce loan.
  4. Paid expenses amounting to $72,000.
  5. Paid a $13,500 dividend to the stockholders.
  6. Determined that the market value of the land is $50,000.

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