aces Exercise 1-6A (Algo) Effect of transactions on the accounting equation LO 1-4 At the beginning of Year 2, Better Corp's accounting equation showed the following accounts and balances: BETTER CORP. Accounting Equation Event Assets Balance 1/1/Year 2 Cash 14,000 24,000 Land Liabilities Notes Payable. Stockholders' Equity Accounting Titles for Retained Earnings Common Stock Retained Earnings 12,400 7,400 18,200 Better Corp. completed the following transactions during Year 2: 1. Purchased land for $7,000 cash. 2. Acquired $29,000 cash from the issue of common stock. 3. Received $68,000 cash for providing services to customers. 4. Paid cash operating expenses of $41,600. 5. Borrowed $14,000 cash from the bank. 6. Paid a $7,000 cash dividend to the stockholders. 7. Determined that the market value of the land purchased in event 1 is $39,000. Required a. Record the transactions in the accounting equation for Year 2. 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. b. As of December 31, Year 2, determine the total amount of assets, liabilities, and stockholders' equity and present this information in the form of an accounting equation. c. What is the amount of total assets, liabilities, and stockholders' equity as of January 1, Year 3? Complete this question by entering your answers in the tabs below. 2 Complete this question by entering your answers in the tabs below. 10 points Req A Req B and C eBook Record the transactions in the accounting equation for Year 2. 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. (Enter any decreases to account balances with a minus sign. If there is no effect on the Accounts Titles for Retained Earnings, leave the cell blank. Not all cells require input.) DE Pret Event Accounting Equation Accounting Equation for Year 2 Show less & References Assets Cash Land Liabilities Notes Payable + Common Stock Stockholders' Equity Retained Accounts Titles for Retained Earnings Earnings Balance 1/1/Year 2 14,000 24,000- 12.400 7,400+ 18,200 1 2. + 4 5 B. 7 Totals 14,000+ 24.000 12.400+ 7,400 18,200 Req B and C > Required a. Record the transactions in the accounting equation for Year 2. 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. b. As of December 31, Year 2, determine the total amount of assets, liabilities, and stockholders' equity and present this information in the form of an accounting equation. c. What is the amount of total assets, liabilities, and stockholders' equity as of January 1, Year 3? Complete this question by entering your answers in the tabs below. Req Al Req B and C As of December 31, Year 2, determine the total amount of assets, liabilities, and stockholders' equity and present this information in the form of an accounting equation. What is the amount of total assets, liabilities, and stockholders' equity as of January 1, Year 3? b. C. Assets Liabilities Stockholders' Equity