Problem: Module 1 Textbook Problem 1 Learning Objective: 1-3 Show how business events affect the accounting equation 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 $12,000 cash. 2. Acquired $39,000 cash from the issue of common stock. 3. Received $78,000 cash for providing services to customers. 4. Paid cash operating expenses of $40,600. 5. Borrowed $24,000 cash from the bank. 6. Paid a $12,000 cash dividend to the stockholders. 7. Determined that the market value of the land purchased in event 1 is $49,000. 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 tities for these accounts in the last column of the table. b. As of December 31, Year 2, determine the total amount of assets, llabilities, and stockholders' equity and present this information in the form of an accounting equation. c. What is the omount of total assets, llabilities, and stockholders' equity as of January 1, Year 3 ? Complete this question by entering your answers in the tabs below. Record the transactions in the accounting equstion for Year 2. Record the amounts of revenue, expense, and dividends in the Retained Earningr colume. Provide the appropriate vtes for these accounts in the Last column of the table. (Fhter any decreases to account balances with a minini sign, if thern is no effect on the Accounts Tities for Retained Earnings, leawe the cell blank, Not ail celis repuire input.) 2. Duir uwer \$$12,000 cash dividend to the stockholders. 7. Determined that the market value of the land purchased in event 1 is $49,000. Required a. Record the transactigns 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. 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, liablities, and stockholders' equity as of January 1, Year 3
