As of December 31, Year 1, Moss Company had total cash of $195,000, notes payable of $90,500, and common stock of $84,500. During Year 2, Moss earned $42,000 of cash revenue, paid $24,000 for cash expenses, and paid a $3,000 cash dividend to the stockholders. Required: a. Determine the amount of retained earnings as of December 31, Year 1. Retained earnings b. & c. Create an accounting equation an record the beginning account balances, revenue, expense, and dividend events under the accounting equation. Note: Enter any decreases to account balances with a minus sign. Event $ 20,000 Beginning balance 1. Earned revenue 2. Paid expenses 3. Paid dividend Ending balance MOSS COMPANY Effect of Year 2 Transactions on the Accounting Equation Assets Cash 195,000 = 42,000 = (24,000) = (3,000) 210,000 II Liabilities Notes Payable 90,500 90,500 + + + + + + + Stockholders' Equity Common Stock + 84,500 84,500 + + + + + Retained Earnings 42,000 18,000 39,000 99,000

As of December 31, Year 1, Moss Company had total cash of $195,000, notes payable of $90,500, and common stock of $84,500. During Year 2, Moss earned $42,000 of cash revenue, paid $24,000 for cash expenses, and paid a $3,000 cash dividend to the stockholders Required: a. Determine the amount of retained earnings as of December 31 , Year 1 . b. \& c. Create an accounting equation and record the beginning account balances, revenue, expense, and dividend events under the accounting equation. Note: Enter any decreases to account balances with a minus sign. As of December 31, Year 1, Moss Company had total cash of $195,000, notes payable of $90,500, and common stock of $84,500. During Year 2 , Moss earned $42,000 of cash revenue, paid $24,000 for cash expenses, and paid a $3,000 cash dividend to the stockholders: Required: a. Determine the amount of retained earnings as of December 31 , Year 1 . b. \& c. Create an accounting equation and record the beginning account balances, revenue, expense, and dividend events under the accounting equation. Note: Enter any decreases to account balances with a minus sign