The Maryland Corporation Was Started on January 1, Year 1

Essay

The Maryland Corporation was started on January 1, Year 1, with the issuance of $50,000 of stock. During Year 1, the company provided $75,000 of services on account and collected $68,000 of that amount. Maryland incurred $63,000 of expenses, and paid $50,000 of that amount during Year 1. On December 31, Year 1, Maryland paid investors a $2,000 cash dividend and accrued $4,000 of salary expense.
Required:1)Determine the net income for year ended December 31, Year 1.2)Prepare Maryland Corporation's Statement of Cash Flows for the year ended December 31, Year 1.3)Determine the balance in Maryland's Retained Earnings account as of December 31, Year 1.