4 0 oints Ortho Company experienced the following events during its first- and second-year operations: Year 1 Transactions: 1. Acquired $68,000 cash from the issue of common stock, 2. Borrowed $36,000 cash from the National Credit Union. 3. Earned $59.000 of cash revenue. 4. Incurred $43,000 of cash expenses. 5. Paid a $7,000 cash dividend. 6. Paid $37.000 cash to purchase land. eBook Hint Print Year 2 Transactions: 1. Acquired $50,000 cash from the issue of common stock. 2. Borrowed $20,000 cash from the National Credit Union 3. Earned $85,000 of cash revenue. 4. Incurred $62,000 of cash expenses. 5. Paid a $2,000 cash dividend. 6. Paid $25,000 cash to purchase land. Required a. 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 on 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 MS Assets ORTHO COMPANY Accounting Equation for Year 1 Liabilities Notes Common Payable Stock Event Stockholders' Equity Retained Account Titles for Earnings Retained Earnings + Cash + Land + + + - + + + Beg Bal 1. Issued stock 2. Loan 3. Cash revenue 4. Cash expenses 5. Paid dividend 6. Land purchase Totals + + + Reg A Year 1 Reg Aean 2 Red B Reg D2 Record the transactions in an accounting equation like the equation shown next. Record the amounts of revenue, expense, and dividend 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 th balances for the second accounting cycle. (Enter any decreases to account balances with a minus sign. Not all cells require input) Assets ORTHO COMPANY Accounting Equation for Year 2 Liabilities Notes Common Payable Stock Event Stockholders' Equity Retained Account Titles for Earnings Retained Earnings Cash Land + + Beg Bal + + + 1. Issued stock 2. Loan + 3. Cash revenue 4. Cash expenses 5. Paid dividend 6. Land purchase Totals + ORTHO COMPANY Income Statement For the Period Ended December 31, Year 1 & Year 2 Year 1 Year 2 Req A Year 2 Req B2 Prepare a stockholders' equity for Year 1 and Year 2. ORTHO COMPANY Statement of Changes in Stockholders' Equity For the Period Ended December 31, Year 1 & Year 2 Year 1 Beginning common stock Year 2 Ending common stock Beginning retained earnings Ending retained earnings Total stockholders' equity ORTHO COMPANY Balance Sheet As of December 31, Year 1 Year 1 Year 2 Assets Total assets Total liabilities Stockholders' Equity Total stockholders' equity Total abilities and stockholders' equity ORTHO COMPANY Statement of Cash Flows For the Year Ended December 31, Year 1 & Year 2 Year 1 Year 2 Cash flows from operating activities: Net cash flow from operating activities Cash flows from investing activities: Net cash flow from investing activities Cash flows from financing activities: Net cash flow from financing activities Ending Cash Balance