I attached the question and the table. Please help me fill out the table correctly. I am very confused and don’t think that I am doing it correctly. It was completely blank when I started but here is what I think so far… thank you so much. ### Understanding the Accounting Equation through Moss Company’s Transactions#### b. & c. Creating an Accounting Equation and Recording Begining Account Balances, Revenue, Expense, and Dividend EventsThe accounting equation is fundamental to the double-entry bookkeeping system. The equation is represented as:\[ \text{Assets} = \text{Liabilities} + \text{Stockholders' Equity} \]Each financial transaction affects this equation to maintain its balance.#### Example: Moss CompanyThe table below details the effect of Year 2 transactions on the accounting equation for Moss Company. The table illustrates beginning balances and subsequent changes due to different financial events.#### Effect of Year 2 Transactions on the Accounting Equation| Event | Assets | Liabilities | Stockholders’ Equity ||-------|------------------------|------------------|-------------------------------|| | Cash | Notes Payable | Common Stock | Retained Earnings ||-------|------------------------|------------------|------------------|-------------------|| **Beginning balance** | 160,000 | 86,000 | 52,800 | - || 1. **Earned revenue** | 40,000 | - | | 40,000 || 2. **Paid expenses** | (22,000) | - | | (22,000) || 3. **Paid dividend** | (3,400) | - | | (3,400) | |-------|------------------------|------------------|------------------|-------------------|| **Ending balance** | 174,600 | 86,000 | 52,800 | 14,600 |#### Detailed Explanation of Transactions:1. **Earned revenue**: This transaction increases the company's cash (an asset) by \$40,000 and also increases retained earnings (part of stockholders' equity) by the same amount. - Assets (Cash): +\$40,000 - Retained Earnings: +\$40,0002. **Paid expenses**: Expenses reduce both the company's cash (an asset) and retained earnings (part of stockholders' equity) simultaneously by \$22,000. - Assets (Cash): -\$22,000 - Retained Earnings: -\$22,0003. **Paid dividend**: Paying a dividend decreases the As of December 31, Year 1, Moss Company had total cash of $160,000, notes payable of $86,000, and common stock of $52,800. During Year 2, Moss earned $40,000 of cash revenue, paid $22,000 for cash expenses, and paid a $3,400 cash dividend to the stockholders.

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Description: I attached the question and the table. Please help me fill out the table correctly. I am very confused and don’t think that I am doing it correctly. It was completely blank when I started but here is what I think so far… thank you so much. ### Unders

The accounting equation states that assets equal to sum of liabilities and equity. Assets =…

Business

Accounting

D. & c. Create an accounting equation and record the beginning account balances, revenue, expense, and dividend events unde accounting equation. (Enter any decreases to account balances with a minus sign.) MOSS COMPANY Effect of Year 2 Transactions on the Accounting Equation Assets Liabilities Stockholders' Equity Event Cash Notes Payable + Common Stock Beginning balance 160,000 = 86,000+ 52,800 + 1. Earned revenue 40,000 = + + (22,000) = + + 2. Paid expenses 3. Paid dividend Ending balance (3,400) = + + 174,600 = 86,000 + 52,800 + Retained Earnings 40,000 (22,000) (3,400) 14,600

D. & c. Create an accounting equation and record the beginning account balances, revenue, expense, and dividend events unde accounting equation. (Enter any decreases to account balances with a minus sign.) MOSS COMPANY Effect of Year 2 Transactions on the Accounting Equation Assets Liabilities Stockholders' Equity Event Cash Notes Payable + Common Stock Beginning balance 160,000 = 86,000+ 52,800 + 1. Earned revenue 40,000 = + + (22,000) = + + 2. Paid expenses 3. Paid dividend Ending balance (3,400) = + + 174,600 = 86,000 + 52,800 + Retained Earnings 40,000 (22,000) (3,400) 14,600

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter21: Corporations: Taxes, Earnings, Distributions, And The Statement Of Retained Earnings

Section: Chapter Questions

Problem 2CE

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