Question

Check m At tne beginning or rear 2, Better Corp.s accounting recoras naa tne roliowing generai ieager accounts ana Daiances BETTER CORP. Accounting Equation Event Assets Liabilities Accounting Titles for Retained Earnings Stockholders' Equity Land 20,000 Cash Notes Payable Common Stock Retained Earnings 11,000 Balance 01/01/Year 2 10,000 12,000 7,000 Better Corp. completed the following transactions during Year 2: 1 Purchased land for $5,000 cash. 2. Acquired $25,000 cash from the issue of common stock 3. Received $75,000 cash for providing services to customers. 4. Paid cash operating expenses of $42,000. 5. Borrowed $10,000 cash from the bank. 6. Paid a $5,000 cash dividend to the stockholders. 7. Determined that the market value of the land purchased in event 1 is $35,000. es Required a. Record the transactions in the appropriate general ledger accounts. 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. 7 of 10 <Prev Next

Answer 1

Better Corporation Accounting Equation for Year 1 Assets + Event Bal 1/1/Year 2 + Liabilities Notes Payable 12000 Land 20000 5000 Stockholders Equity Account Titles For Common Stock Retained Earnings Retained Earnings 7000 11000 + + + + + + + + 25000 + Cash 10000 -5000 25000 75000 -42000 10000 -5000 + + + 75000 -42000 Service Revenue Operating Expense + + + 10000 + + + + + + -5000 Dividends paid No Entry + + Totals 68000 25000 + + 93000 Total Assets 22000 22000 Total Liabilities + 32000 39000 71000 Total Stockholders Equity Total Assets = 93000 Total Liabilities = 22000 Total Stockholders Equity = 71000