Green Gardens, Inc. began operations on January 1, Year 1. During Year 1, Green Gardens experienced the following accounting events.
1. Acquired $20,000 cash from the issue of common stock.
2. Borrowed $8,000 cash from the State Bank.
3. Collected $38,000 cash as a result of providing services to customers.
4. Paid $15,000 for operating expenses.
5. Paid a $5,000 cash dividend to the stockholders.
6. Paid $18,000 cash to purchase land.

Required
a. Record the events in an accounting equation like the equation shown next. 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 1, determine the total amount of assets, liabilities, and stockholders’ equity and prepare a balance sheet.
c. What is the amount of total assets, liabilities, and stockholders’ equity as of January 1, Year 2?
d. Assume that the land has a market value of $22,000 as of December 31, Year 1. At what amount will the land be shown on the December 31, Year 1, balance sheet? Why is this amount used in the balance sheet?

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Green Gardens, Inc. Accounting Equation Acct. Titles for RE Event No. Assets = Llabilities + Stockholders' Equity Common Retalned Notes Payable Land Stock Earnings Cash Beg. Bal.