4 Exercise 1-12A (Static) Prepare balance sheets for two accounting periods using a vertical format Lo 1-5. 1-6 5 The Year Tending balonces for the Better Corp become the Year 2 beginning balances. Those balances are shown in the following accounting equation BETTER CORP. Accounting Equation Year 2 Event No. Assets Liabilities Accounting Titles for Stockholders' Equity Cash Land Notes Payable Retained Earnings Connon stock Retained Earnings Beg. Bal. 1. 20, cea 12,006 7.000 9,000 Better Corp. completed the following transactions during Year 2 1. Purchased land for $5,000 cash 2. Acquired $25,000 cash from the issue of common stock 3. Received $75,000 cash for providing services to customers 4. Paid cash operating expenses of $42,000. 5. Borrowed $10,000 cash from the bank. 6. Pald a $5,000 cash dividend to the stockholders. 7. Determined that the market value of the land on December 31, Year 2, is $35,000 Required a. Record the transactions in the appropriate accounts under an accounting equation. Record the amounts of revenue, expense, and dividends the Retained Earnings column. Provide the appropriate titles for thesh accounts in the last column of the table. b-1. As of December 31, Year 2, determine the total amount of assets, liabilities, and stockholders' equity b.2. Prepare balance sheets for Year 1 and Year 2. The Year 1 ending balances include $8,000 cash, $20,000 land. $12.000 notes payable, $7,000 common stock, and $9,000 retained earnings. c. How much cash is in the notes payable account? d. How much cash is in the common stock account? e. How much cash is in the retained earnings account? What is the balance of the cash account at the end of Year 2? f. What is the amount of the land shown on the December 31, Year 2 balance sheet? 1. What is the amount of the land snown on the vecember 31, Tear 4, Dance Shot Complete this question by entering your answers in the tabs below. ReqA Req B1 Req B2 Reg C to F As of December 31, Year 2, determine the total amount of assets, liabilities, and stockholders' equity. Assets Llabilities Stockholders' Equity 4 Complete this question by entering your answers in the tabs below 2.85 points Red A Reg 31 Reg Reg to 5 Prepare balance sheets for Year 1 and Year 2. The Year 1 ending balances include $8,000 cash, $20,000 tand, 512,000 notes payable, $7,000 common stock, and $9,000 retained earnings ebook BETTER CORP Balance Sheet December 31, Year 1 & Year 2 Year 1 Year 2 Assets Print $ 0 $ 0 Total assets Liabilities s 0 $ 0 Total liabilities Stockholders' Equity 0 0 Total stockholders' equity Total liabilities and stockholders' equity $ 0 $ 0 1. What is Complete this question by entering your answers in the tabs below. Req A Reg B1 Reg B2 Reg C to F c. How much cash is in the notes payable account? (Do not leave any cells blank.) d. How much cash is in the common stock account? (Do not leave any cells blank.) e. How much cash is in the retained earnings account? What is the balance of the cash account at the end of Year 2? (Do not leave any cells blank.) f. What is the amount of the land shown on the December 31, Year 2, balance sheet? (Do not leave any cells blank.) Show less c d. B Cash in the notes payable account Cash in the common stock account Cash in the retained earnings account Balance of the cash account Balance in the land account Recto
