Exercise 1-6A (Algo) Effect of transactions on general ledger accounts LO 1-4 At the beginning of Year 2, Better Corporations accounting records had the following general ledger accounts and balances. BETTER CORPORATION Accounting Equation Event Assets = Liabilities + Stockholders Equity Accounts Titles for Retained Earnings Cash Land Notes Payable Common Stock Retained Earnings Beginning Balance 01/01/Year 2 21,000 31,000 13,100 8,100 30,800 Better Corporation completed the following transactions during Year 2: Purchased land for $10,500 cash. Acquired $36,000 cash from the issue of common stock. Received $75,000 cash for providing services to customers. Paid cash operating expenses of $40,900. Borrowed $21,000 cash from the bank. Paid a $10,500 cash dividend to the stockholders. Determined that the market value of the land purchased in event 1 is $46,000. Required 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?

Complete this question by entering your answers in the tabs below. Record the transactions in the appropriate general ledger accounts. Record the amounts of revenue, expense, and dividends in the Ret Provide the appropriate titles for these accounts in the last column of the table. (Enter any decreases to account balances with a minus entry.)