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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. completed the following transactions during Year 2 . 1. Purchased land for $12,500 cash. 2. Acquired $40,000 cash from the issue of common stock. 3. Received $79,000 cash for providing services to customers: 4. Paid cash operating expenses of $40,500. 5. Borrowed $25,000 cash from the bank. 6. Paid a $12,500 cash dividend to the stockholders. 7. Determined that the market value of the land purchased in event 1 is $50,000. Required 0. 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 stockhoiders equity and present this information 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