Ch $1$ Assignment i

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Purchased land for $$12,500$ cash.

Acquired $$40,000$ cash from the issue of common stock.

Received $$79,000$ cash for providing services to customers.

Paid cash operating expenses of $$40,500.$

Borrowed $$25,000$ cash from the bank.

Paid a $$12,500$ cash dividend to the stockholders.

Determined that the market value of the land purchased in event $1$ is $$50,000$

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.

References

ReqA

Req $B$ and $C$

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 $3?$

ReqA

Req B and C $>$