Exercise 1-6A (Static) 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 Assets Liabilities + Notes Event Balance Cash Land Payable Stockholders' Equity Common Stock Accounting Titles for Retained Earnings Retained Earnings 1/1/Year 2 10,000 20,000. 12,000 7,000 11,000 Better Corp. completed the following transactions during Year 2: 2 Purchased land for $5,000 cash. 2. Acquired $25,000 cash from the issue of common stock. 3. Received $75,000 cash for providing services to customers. 4. Paid cash operating expenses of $42,000. 5. Borrowed $10,000 cash from the bank. 6. Paid a $5,000 cash dividend to the stockholders. 7. Determined that the market value of the land purchased in event 1 is $35,000. 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? Hint BETTER CORPORATION Accounting Equation for Year 2 Liabilities + Stockholders' Equity Event Assets Cash Land rint Balance 1/1/Year 2 10,000 20,000 30 1. + = ences 2. + 3. 4. 5. Totals 6. Accounts Titles for Notes Payable + Common Stock + Retained Earnings Retained Earnings 12,000+ 7,000+ 11,000 + + + 7. 10,000+ 20,000 = 12,000 + 7,000+ 11,000 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 Assets b. Liabilities Stockholders' Equity