Exercise 1-7A (Algo) Missing information and recording events LO 1-3 As of December 31. Year 1, Moss Company had total cash of $152,000, notes payable of $85,200, and common stock of $52.000 During Year 2 Mass earned $32,000 of cash revenue, paid $18,000 for cash expenses, and paid a $2,600 cash dividend to the stockholders Required a. Determine the amount of retained earnings as of December 31, Year 1 Retained earning b.& c. Create an accounting equation and record the beginning account balances, revenue, expense, and dividend events under the accounting equation (Enter any decreases to account balances with a minus sign.) Event Beginning balance 1 Eamed revenue 2 Pald expenses 3. Pald dividend Ending balance MOSS COMPANY Effect of Year 2 Transactions on the Accounting Equation Assets Liabilities Stockholders' Equity Cash Notes Common Retained Payable Stock Earnings + + - + + 0. 01