Question

At the beginning of 2018, Better Corp.'s accounting records had the following general ledger accounts and balances: Event Assets BETTER CORP. Accounting Equation Liabilities + Stockholders' Equity Notes Common Retained Payable Stock Earnings 12,200 7,200 14,600 Accounting Titles for Retained Earnings Cash Land Balance 1/1/2018 12,000 22,000 Better Corp. completed the following transactions during 2018: 1. Purchased land for $6,000 cash. 2. Acquired $27,000 cash from the issue of common stock. 3. Received $66,000 cash for providing services to customers. 4. Paid cash operating expenses of $41,800. 5. Borrowed $12,000 cash from the bank. 6. Paid a $6,000 cash dividend to the stockholders. 7. Determined that the market value of the land purchased in event 1 is $37,000. 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, 2018, 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, 2019? Complete this question by entering your answers in the tabs below. Req A Reg B and C

Answer 1

1-	Event	Assets		=	Liabilities		shareholders equity		Accounting titles for retained earning
		cash	land		Notes payable	Bank loan	common stock	retained earning
1-	beginning balance	12000	22000		12200		7200	14600
2-	purchase land for 6000	-6000	6000		0		0	0
3-	Acquired 27000 cash from the issue of common stock	27000					27000
4-	received 66000 cash for providing services	66000						66000	service revenue
5-	paid operatinng expenses	-41800						-41800	operating expenses
6-	borrowed 12000 from bank	12000				12000
7-	paid dividend to shareholders	-6000						-6000	dividend
8-	no effect
	Year end balance	63200	28000		12200	12000	34200	32800
	total of assets	91200			91200
	total of liabilities	24200
	total of shareholders equity	67000
	total of liabilities and shareholders equity
2-	Assets	=	Liabilities	+	Shareholders equity
	91200	=	24200	+	67000
3-	Beginning balance of total assets, total liabilities and shareholders equity
	Assets	=	Liabilities	+	Shareholders equity
	91200	=	24200	+	67000