The following information was taken from the accounts of Green Market, a delicatessen, at December 31, Year 2. The accounts are listed in alphabetical order, and each has a normal balance.

Req A Req B1 Req B2 Req B3 Reqc Organize ledger accounts under an accounting equation and record the events in the accounts. In the last column of the table, provide appropriate account titles for the Retained Earnings amounts. (If there is no effect on the Account Titles for Retained Earnings, leave the cell blank. Not all cells will require input. Enter any decreases to account balances with a minus sign.) JANA'S FLOWERS Effect of Events on the Accounting Equation Assets Stockholders' Equity Accounts Common Retained Inventory Receivable Stock Earnings Event Accounts Titles for Retained Earnings Cash 1. + + + 2. + II II 3a. + + + + 3b. + + + + + + + 4. + + 5. + + + Total + Req A Req B1 Req B2 Req B3 Reqc Prepare a balance sheet. JANA'S FLOWERS Balance Sheet As of December 31, Year 1 Assets Total assets Liabilities Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity On January 1, Year 1, Jana started a small flower merchandising business that she named Jana's Flowers. The company experienced the following events during the first year of operation: 1. Started the business by issuing common stock for $27,000 cash. 2. Paid $18,000 cash to purchase inventory. 3. Sold merchandise that cost $12,000 for $26,000 on account. 4. Collected $23,000 cash from accounts receivable. 5. Paid $5,800 for operating expenses. Required a. Organize ledger accounts under an accounting equation and record the events in the accounts. In the last column of the table, provide appropriate account titles for the Retained Earnings amounts. b-1. Prepare an income statement. b-2. Prepare a balance sheet. b-3. Prepare a statement of cash flows. c. Since Jana sold inventory for $26,000, she will be able to recover more than half of the $27,000 she invested in the stock. Do you agree with this statement