At the beginning of Year 2, Better Corp.s accounting records had the following general ledger accounts and balances.

Better Corp. completed the following transactions during Year 2:

1. Purchased land for $6,000 cash.
2. Acquired $27,000 cash from the issue of common stock.
3. Received $66,000 cash for providing services to customers.
4. Paid cash operating expenses of $41,800.
5. Borrowed $12,000 cash from the bank.
6. Paid a $6,000 cash dividend to the stockholders.
7. Determined that the market value of the land purchased in event 1 is $37,000.

a. Record the transactions in the appropriate general ledger accounts. 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?

Accounting Titles for Retained Earnings Event BETTER CORP. Accounting Equation Liabilities Stockholders' Equity Notes Payable Common Stock Retained Earnings 12,200 7,200 14,600 Assets Land 22,000 Cash 12,000 Balance 01/01/Year 2 Event Assets + BETTER CORPORATION Accounting Equation for Year 1 Liabilities Stockholders' Equity Notes Common Retained Land Payable Stock Earnings 22,000 12,200 + 7,200 + 14,600 Accounts Titles for Retained Earnings Cash + Balance 1/1/Year 2 12,000 + 1. + + + + = + 2. 3. + + + + + 4. + 5 + + 6. + + + 7. + + + Totals 12,000 + 22,000 12,200 + 7,200 + 14,600 Assets = Liabilities Stockholders' Equity 11 + Assets = Liabilities + Stockholders' Equity = +