Better Corp. completed the following transactions during Year 2: 1 Purchased land for $11,500 cash.
2 Acquired $38,000 cash from the issue of common stock.
3 Received $77,000 cash for providing services to customers.
4 Paid cash operating expenses of $40,700.
5 Borrowed $23,000 cash from the bank.
6 Paid a $11,500 cash dividend to the stockholders.
7 Determined that the market value of the land purchased in event 1 is $48,000.
Required:
A. Record the transactions In the approprlate general ledger accounts. Record the amounts of revenue, expense, and dividends In the Retalned Earnings column.
B. As of December 31, 2018, determine the total amount of assets, lablities, 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?
BETTER CORPORATION
Accounting Equation for 2018
Event Assets = Liabilities + Stockholders Equity Accouns
Cash + Land Accounts = Notes + Common + Retained Title for
Payable stock Earnings Retained
Earnings
Balance
1/1/2018 22,000 + 32.000 = 13,200 + 8,200 + 32,600
Totals 22,000 + 32,000 = 13,200 + 8,200 + 32,600