Question

Susan’s Consulting experienced the following transactions for2014, its first year of operations, and 2015. Assume that alltransactions involve the receipt or payment of cash.

Transactions for2014

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

Transactions for2015

Beginningaccount balances for 2015 are:

Cash	$	101,000
Land		40,000
Notes payable		18,000
Common stock		65,000
Retained earnings		58,000

1.	Acquired anadditional $23,000 from the issue of common stock.
2.	Received$133,000 for providing services.
3.	Paid $13,000 tocreditors to reduce loan.
4.	Paid expensesamounting to $72,000.
5.	Paid a $13,500dividend to the stockholders.
6.	Determined thatthe market value of the land is $50,000.

Required
a.	Record the effects of each accounting event under theappropriate headings for each year. Record the amounts of revenue,expense, and dividends in the Retained Earnings column. Provideappropriate titles for these accounts in the last column of thetable. (Enter any decreases to account balances with aminus sign. Select "NA" if there is no effect on the "AccountTitles for Retained Earnings".)

b-1.	Prepare an income statement for each year accounting period.

b-2.	Prepare a statement of changes instockholders’ equity for each year accounting period.

b-3.	Prepare a year-end balance sheet for eachyear accounting period.

b-4.	Prepare a statement of cash flows for eachyear accounting period. (Amounts to be deducted should beindicated with a minus sign.)

c.	Determine theamount of cash that is in the retained earnings account at the endof 2014 and 2015.

e.	Determine the balance in the Retained Earnings accountimmediately after Event 2 in 2014 and in 2015 are recorded.