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Dakota Company experienced the following events during Year 2: Acquired $30,000 cash from the issue of common stock. Paid $12,000 cash to purchase land. Borrowed $10,000 cash. Provided services for $20,000 cash. Paid $1,000 cash for utilities expense. Paid $15,000 cash for other operating expenses. Paid a $2,000 cash dividend to the stockholders. Determined that the market value of the land purchased in Event 2 is now $12,700.

. Record the transactions in an accounting equation like the equation shown next. Record the amounts of revenue, expense, and dividends in the Retained Earnings column. Provide the appropriate titles for these accounts in the last column of the table. Show the totals at the end of Year 1 and use these totals as the beginning balances for the second accounting cycle.

b-1. Prepare an income statement for Year 1 and Year 2.

b-2. Prepare a stockholders' equity for Year 1 and Year 2.

b-3. Prepare a balance sheet for Year 1 and Year 2.

b-4. Prepare a statement of cash flows for Year 1 and Year 2.

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anthougo

a) Recording the transactions of Dakota Company during Year 2 in an accounting equation is as follows:

                                                                                                 

                 Assets               =        Liabilities  +     Equity               Retained

                 Cash     Land      Notes Payable  Common Stock      Earnings

Beginning

balance $2,000   $12,000        $0                        $6,000          $8,000

1.             30,000                                                      30,000

2.           -12,000      12,000

3.            10,000                         10,000

4.           20,000                                                                             20,000 (Sales Revenue)

5.             -1,000                                                                              -1,000 (Utility Expense)

6.           -15,000                                                                           -15,000 (Operating Expenses)

7.            -2,000                                                                            -2,000

Total   $32,000  $24,000   $10,000                $36,000         $10,000

b-1.The preparation of an income statement for Year 2 for Dakota Company is as follows:

Dakota Company

Income Statement

For Year 2

Service Revenue                     $20,000

Utility Expense             $1,000

Operating expenses $15,000 $16,000

Net income                                $4,000

b-2. The preparation of a stockholders' equity for Year 2 for Dakota Company is as follows:

Dakota Company

Stockholders' Equity Statement

For Year 2

Net income               $4,000

Retained earnings      8,000

Dividends                  (2,000)

Retained earnings $10,000

b-3. The preparation of a balance sheet for Year 2 for Dakota Company is as follows:

Dakota Company

Balance Sheet

For Year 2

Cash                       $32,000

Land                         24,000

Total assets           $56,000

Notes Payable       $10,000

Common Stock      36,000

Retained Earnings  10,000

Total liabilities +

 equity                 $56,000

Data and Transaction Analysis:

Cash $30,000 Common Stock $30,000

Land $12,000 Cash $12,000

Cash $10,000 Note Payable $10,000

Cash $20,000 Service Revenue $20,000

Utilities Expense $1,000 Cash $1,000

Operating expenses $15,000 Cash $15,000

Dividend $2,000 Cash $2,000

Land $700 Revaluation Gain $700

Learn more about the accounting equation at https://brainly.com/question/24401217

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Question Completion:

Beginning balances:

Cash $2,000

Land $12,000

Note Payable $0

Common Stock $6,000

Retained Earnings $8,000

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