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Exercise 1-26A (Static) Prepare financial statements covering two accounting cycles LO 1-5, 1-6, 17,18,19,110 Ortho Company experienced the following events during its first- and second-yeat operations: Year 1 Transactions: 1 Acquired $68,000 cash from the issue of common stock. 2. Borrowed $36,000 cash from the National Credit Union. 3. Earned $59,000 of cash revenue. 4. Incurred $43,000 of cash expenses. 5. Paid a $7,000 cash dividend. 6. Paid $37,000 cash to purchase land. Year 2 Transactions: 1. Acquired $50,000 cash from the issue of common stock, 2. Borrowed $20,000 cash from the National Credit Union. 3. Earned $85,000 of cash revenue. 4. Incurred $62.000 of cash expenses. 5. Paid a $2,000 cash dividend. 6. Paid $25,000 cash to purchase land. Required: a. Record the transactions in an accounting equation like the equation shown next. Record the amounts of revenue, expense, and dividends in the Retained Earnings column. Provide the appropriate tites for these accounts in the last column of the table. Show the totals at the end of Year 1 and use these totals as the beginning balances for the second accounting cycle. Required: a. Record the transactions in an accounting equation like the equation shown next. Record the amounts of revenue, expense, and dividends in the Retained Earnings column. Provide the approprlate titles for these accounts in the last column of the table. Show the totals at the end of Year 1 and use these totals as the beginning balances for the second accounting cycle. b-1. Prepare an income statement for Year 1 and Year 2 . b-2. Prepare a stockholders' equity for Year 1 and Year 2 . b-3. Prepare a balance sheet for Year 1 and Year 2. b-4. Prepare a statement of cash flows for Year 1 and Year 2. Complete this questien by entering your answers in the tabs below. Record the tronsactions in an accounting equation like the equation shown next. Record the amounts of revenue, expense, and div column. Provide the appropriate titles for these accounts in the last column of the table. Show the totals at the end of Year 1 and balances for the second accounting cycle. Note: Enter any decreases to account balances with a minus sign. Not all cetls require input. Record the transactions in an accounting equation like the equation shown next. Record the amounts of revenue, expense, and div column. Provide the appropriate titles for these accounts in the last column of the table. Show the totals at the end 1 and balances for the second accounting cycle. Note: Enter any decreases to account balances with a minus sign. Not all cells require input