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 Liabilities Notes Cash Land Payable Balance 1/1/Year 2 16,000 26,000 12,600 Stockholders' Equity Common Stock Accounting Titles for Retained Earnings Retained Earnings 7,600 21,800 Better Corp. completed the following transactions during Year 2: 1. Purchased land for $8,000 cash. 2. Acquired $31,000 cash from the issue of common stock. 3. Received $70,000 cash for providing services to customers. 4. Paid cash operating expenses of $41,400, 5. Borrowed $16,000 cash from the bank. 6. Paid a $8,000 cash dividend to the stockholders. 7. Determined that the market value of the land purchased in event 1 is $41,000. 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 What le the amount of total areate liabilitine and starkhaldare anuse of lanuant Vase 33 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 A Req B and C Record the transactions in the accounting equation for Year 2. Record the amounts of revenue, expense, and dividends in the Retained Eamings 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 Eamings, leave the cell blank. Not all cells require input.) Show less A Event Assets Accounting Equation Accounting Equation for Year 2 Liabilities Stockholders' Equity Cash Land Notes Payable Common Stock Retained Earnings Accounts Titles for Retained Earnings Balance 1/1/Year 2 16,000+ 26,000= 12,600 + 7,600 + 21,800 1. 8,000+ + 2 31,000+ 3. 70,000+ 4. 41,400 + 5 16,000+ + 6. 8,000+ 7 41,000+ Totals 231,400+ 26,000 + 12.600+ 7,600+ 21,800 < Prev 2 of 2 Next 7. Determined that the market value of the land purchased in event 1 is $41,000. 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. Req A 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 37 b. C. Assets Liabilities Stockholders' Equity