Reference no: EM132614266

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

1. Acquired $85,000 by issuing common stock.
2. Received $100,000 cash for providing services to customers.
3. Borrowed $16,000 cash from creditors.
4. Paid expenses amounting to $53,000.
5. Purchased land for $40,000 cash.

Transactions for 2019

Beginning account balances for 2019 are:

Cash$108,000

Land 40,000

Notes payable 16,000

Common stock 85,000

Retained earnings 47,000

1. Acquired an additional $26,000 from the issue of common stock.
2. Received $137,000 for providing services.
3. Paid $11,000 to creditors to reduce loan.
4. Paid expenses amounting to $60,000.
5. Paid a $15,500 dividend to the stockholders.
6. Determined that the market value of the land is $50,000.

Question 1: income statement for each year accounting period.