At the beginning of 2018, Better Corp.’s accounting records had the following ge
ID: 2331037 • Letter: A
Question
At the beginning of 2018, Better Corp.’s accounting records had the following general ledger accounts and balances:
BETTER CORP.
Accounting Equation
Event
Assets
=
Liabilities
+
Stockholders’ Equity
Accounting Titles
for Retained Earnings
Cash
Land
Notes
Payable
Common
Stock
Retained
Earnings
Balance 1/1/2018
21,000
31,000
13,100
8,100
30,800
Better Corp. completed the following transactions during 2018:
Purchased land for $10,500 cash.
Acquired $36,000 cash from the issue of common stock.
Received $75,000 cash for providing services to customers.
Paid cash operating expenses of $40,900.
Borrowed $21,000 cash from the bank.
Paid a $10,500 cash dividend to the stockholders.
Determined that the market value of the land purchased in event 1 is $46,000.
Required
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.
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.
What is the amount of total assets, liabilities, and stockholders’ equity as of January 1, 2019
· Req A
· Req B and C
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. (Enter any decreases to account balances with a minus sign. Select "NA" if there is no effect on the "Accounts Titles for Retained Earnings".)
BETTER CORPORATION
Accounting Equation for 2018
Event
Assets
=
Liabilities
+
Stockholders’ Equity
Accounts Titles for Retained Earnings
Cash
+
Land
=
Notes Payable
+
Common Stock
+
Retained Earnings
Balance 1/1/2018
21,000
+
31,000
=
13,100
+
8,100
+
30,800
1.
+
=
+
+
2.
+
=
+
+
3.
+
=
+
+
4.
+
=
+
+
5
+
=
+
+
6.
+
=
+
+
7.
+
=
+
+
Totals
+
=
+
+
· Req A
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. What is the amount of total assets, liabilities, and stockholders’ equity as of January 1, 2019?
Assets
=
Liabilities
+
Stockholders’ Equity
b.
=
+
c.
=
+
Please typewrite all answers, no handwritten answers, please.
BETTER CORP.
Accounting Equation
Event
Assets
=
Liabilities
+
Stockholders’ Equity
Accounting Titles
for Retained Earnings
Cash
Land
Notes
Payable
Common
Stock
Retained
Earnings
Balance 1/1/2018
21,000
31,000
13,100
8,100
30,800
Explanation / Answer
**Land will be carried at cost and not at market value unless there is a permanent dimunition in value or land is held for sale
Total asset = 91100+41500= 132600
Total liabilities = 34100
Total equity = 44100+54400= 98500
Events Asset = Liabilities + stockholders equity Accounts Titles for Retained Earnings cash + Land = Note payable + common stock + Retained earning Balance 1/1/2018 21000 31000 13100 8100 30800 1 -10500 10500 2 36000 36000 3 75000 75000 Revenue earned 4 -40900 -40900 expense paid 5 21000 21000 6 -10500 -10500 Dividend paid 7 NA NA Total 91100 41500 34100 44100 54400Related Questions
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