The following events are for Holiday Travel Services for Year 1, the first year of operations. Assume that all transactions involve the receipt or payment of cash.1) The business acquired $50,000 from stock issued to owners.2) Creditors loaned the company $27,500.3) The company provided services to its customers and received $75,400.4) The company paid expenses amounting to $63,250.5) The company purchased land for $25,000.6) The company paid a dividend of $5,500 to its owners.Required:a) Show the effects of the above transactions on the accounting equation. (Start by using appropriate element and account headings). For those events that affect retained earnings, indicate in a separate column the appropriate temporary account. Enter a "0" if a transaction does not affect a given
account.??=?+??Event No.?+?=?+?+?Other Account Titles1??????????2??????????3??????????4??????????5??????????6??????????Totals??????????b) Prepare an income statement and balance sheet for and as of the end of Year 1.
What will be an ideal response?
a) 
b) 
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