Reference no: EM132933552
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.
Transactions for 2018
Acquired $70,000 by issuing common stock.
Received $115,000 cash for providing services to customers.
Borrowed $19,000 cash from creditors.
Paid expenses amounting to $56,000.
Purchased land for $40,000 cash.
Transactions for 2019
Beginning account balances for 2019 are:
Cash$108,000
Land 40,000
Notes payable 19,000
Common stock 70,000
Retained earnings 59,000
Acquired an additional $23,000 from the issue of common stock.
Received $134,000 for providing services.
Paid $14,000 to creditors to reduce loan.
Paid expenses amounting to $63,000.
Paid a $13,000 dividend to the stockholders.
Determined that the market value of the land is $50,000.
Problem 1: Determine the amount of cash that is in the retained earnings account at the end of 2018 and 2019.
Problem 2: Determine the balance in the Retained Earnings account immediately after Event 2 in 2018 and in 2019 are recorded