Reference no: EM132935722

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 $50,000 by issuing common stock.
Received $135,000 cash for providing services to customers.
Borrowed $23,000 cash from creditors.
Paid expenses amounting to $60,000.
Purchased land for $30,000 cash.

Transactions for 2019

Beginning account balances for 2019 are:

Cash$118,000

Land 30,000

Notes payable 23,000

Common stock 50,000

Retained earnings 75,000

1. Acquired an additional $28,000 from the issue of common stock.
2. Received $130,000 for providing services.
3. Paid $18,000 to creditors to reduce loan.
4. Paid expenses amounting to $67,000.
5. Paid a $11,000 dividend to the stockholders.
6. Determined that the market value of the land is $40,000.

Problem 1: Prepare a year-end balance sheet for each year accounting period.