Required informationRequired informationApplying Excel $2-1$: Using Basic Excel Skills to Understand the Effect of Transactions on the Accounting EquationSkip to question$[$The following information applies to the questions displayed below.$]$In this Applying Excel exercise you will practice using cell referencing and formulas to understand the effects of transactions on the accounting equation.Watch the tutorial video and then complete Parts $1$ and $2$ to practice and apply the skills demonstrated in the video. Apply Excel $($Part $2)$Revise your worksheet to the accounting equation and update for the new transaction values below, and then answer the questions that follow.The following transactions took place at a newly formed company: $1.$ Started the company by issuing common stock$$51,0002.$ Paid six months of rent in advance$7,0003.$ Provided services to customers on account$12,5004.$ Purchased supplies on account$2,0005.$ Paid employees salaries for the current month$6,0006.$ Paid dividends to stockholders$4,000$Required:$1.$ Based on your new values, enter the total of Assets, Liabilities, and Stockholders Equity: $2.$ What statement below is true regarding the effect of incorrectly including the issuance of Common Stock in the Retained Earnings column instead of the Assets column? multiple choice $1$There will no effect as Assets still equal Liabilities plus Stockholder's Equity.Assets and Retained Earnings will be overstated, the accounting equation will be in balance.Assets will be understated and Stockholder's Equity will be overstated.Both Assets and Stockholder's Equity will be understated$\mathrm{.}3-$a$.$ What would be the amount of total Assets and total Retained Earnings if the payment of dividends weren't made? $3-$b$.$ Would the accounting equation still be in balance? multiple choice $2$YesNo