this what you had - Let's use the given transactions to fill out the accounting equation for both Year 1 and Year 2. We'll determine how each transaction affects the components of the accounting equation: Assets = Liabilities + Stockholders' Equity. Year 1 Transactions: Acquired $80,000 by issuing common stock: Assets [Cash]: +$80,000 Liabilities: No change Stockholders' Equity [Common Stock]: +$80,000 Received $130,000 cash for providing services: Assets [Cash]: +$130,000 Liabilities: No change Stockholders' Equity [Retained Earnings]: +$130,000 Account Title: Revenue Borrowed $21,000 cash from creditors: Assets [Cash]: +$21,000 Liabilities [Notes Payable]: +$21,000 Stockholders' Equity: No change Paid expenses amounting to $54,000: Assets [Cash]: -$54,000 Liabilities: No change Stockholders' Equity [Retained Earnings]: -$54,000 Account Title: Expenses Purchased land for $40,000 cash: Assets [Cash]: -$40,000; Liabilities: No change Stockholders' Equity: No change Year 1 Totals: Cash: $80,000 + $130,000 + $21,000 - $54,000 - $40,000 = $137,000 Land: $40,000 Notes Payable: $21,000 Common Stock: $80,000 Retained Earnings: $130,000 - $54,000 = $76,000