Ortho Company experienced the following events during its first- and second-year 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 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. (Enter any decreases to account balances with a minus sign. Not all cells in the "Accounts Titles for Retained Earnings" column may require an input- leave cells blank if there is no corresponding Retained Earnings input needed.) ORTHO COMPANY Accounting Equation for Year 1 Liabilities Stockholders' Equity Assets Common Event Notes Retained Account Titles for Cash Land Payable Stock Earnings Retained Earmings Beg. Bal. + 68,000 1. Issued stock 2. Loan 36,000 3. Cash revenue 59,000 (43,000) 4 Cash expenses 5. Paid dividend (7,000) + 6. Land purchase 68,000 S 36,000 (43,000) S 52,000 Totals ORTHO COMPANY Accounting Equation for Year 2 Stockholders' Equity Assets Liabilities Event Account Titles for Retained Eamings Common Retained Notes Cash Land Payable Stock Earnings Beg Bal 1. Issued stock 2. Loan 3. Cash revenue + 4 Cash expenses 5. Paid dividend 6. Land purchase S 0 S Totals 0 0 b-1. Prepare an income statement for Year 1 and Year 2 ORTHO COMPANY Income Statement For the Period Ended December 31, Year 1 & Year 2 Year 2 Year 1 0 S 0 FA b-2 Prepare an stockholders' equity for Year 1 and Year 2. (Amounts to be dedcute ORTHO COMPANY Statement of Changes in Stockholders' Equity For the Period Ended December 31, Year 1 & Year 2 Year 2 Year 1 Beginning common stock 0 S 0 Ending common stock Beginning retained earnings Ending retained earnings Total stockholders equity 0 0 b-3. Prepare an balance sheet for Year 1 and Year 2 ORTHO COMPANY Balance Sheet As of December 31, Year 1 Year 2 Year 1 Assets 0 S Total assets 0 Total liabilities Stockholders' Equity Total stockholders equity Total liabilities and stockholders' equity 0$ 0 b-4. Prepare an statement of cash flows for Year 1 and Year 2 (Amounts to be de ORTHO COMPANY Statement of Cash Flows For the Year Ended December 31, Year 1 & Year 2 Year 2 Year 1 Cash Flows From Operating Activities: 0 $ Net cash flow from operating activities: Cash flows from investing activities Net cash flow from investing activities: Cash flows from financing activities Net cash flow from financing activities Ending Cash Balance Ortho Company experienced the following events during its first- and second-year 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 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. (Enter any decreases to account balances with a minus sign. Not all cells in the "Accounts Titles for Retained Earnings" column may require an input- leave cells blank if there is no corresponding Retained Earnings input needed.) ORTHO COMPANY Accounting Equation for Year 1 Liabilities Stockholders' Equity Assets Common Event Notes Retained Account Titles for Cash Land Payable Stock Earnings Retained Earmings Beg. Bal. + 68,000 1. Issued stock 2. Loan 36,000 3. Cash revenue 59,000 (43,000) 4 Cash expenses 5. Paid dividend (7,000) + 6. Land purchase 68,000 S 36,000 (43,000) S 52,000 Totals ORTHO COMPANY Accounting Equation for Year 2 Stockholders' Equity Assets Liabilities Event Account Titles for Retained Eamings Common Retained Notes Cash Land Payable Stock Earnings Beg Bal 1. Issued stock 2. Loan 3. Cash revenue + 4 Cash expenses 5. Paid dividend 6. Land purchase S 0 S Totals 0 0 b-1. Prepare an income statement for Year 1 and Year 2 ORTHO COMPANY Income Statement For the Period Ended December 31, Year 1 & Year 2 Year 2 Year 1 0 S 0 FA b-2 Prepare an stockholders' equity for Year 1 and Year 2. (Amounts to be dedcute ORTHO COMPANY Statement of Changes in Stockholders' Equity For the Period Ended December 31, Year 1 & Year 2 Year 2 Year 1 Beginning common stock 0 S 0 Ending common stock Beginning retained earnings Ending retained earnings Total stockholders equity 0 0 b-3. Prepare an balance sheet for Year 1 and Year 2 ORTHO COMPANY Balance Sheet As of December 31, Year 1 Year 2 Year 1 Assets 0 S Total assets 0 Total liabilities Stockholders' Equity Total stockholders equity Total liabilities and stockholders' equity 0$ 0 b-4. Prepare an statement of cash flows for Year 1 and Year 2 (Amounts to be de ORTHO COMPANY Statement of Cash Flows For the Year Ended December 31, Year 1 & Year 2 Year 2 Year 1 Cash Flows From Operating Activities: 0 $ Net cash flow from operating activities: Cash flows from investing activities Net cash flow from investing activities: Cash flows from financing activities Net cash flow from financing activities Ending Cash Balance