Question

Create an accounting equation and record the beginning account balance under the appropriate elements for Post Company. Record the revenue. expense. and dividenc events under the appropriate elemens of the accounting enustion The accounsing equation must always remain in balance. What is the total of each side at the end of Year 2 ?

Answer 1

The accounting equation is a fundamental concept that shows the relationship between a company's assets, liabilities, and owner's equity. It is important to record account balances and transactions correctly to maintain the equation's balance.

Step-by-step explanation:

The accounting equation is a fundamental concept in accounting that shows the relationship between a company's assets, liabilities, and owner's equity. It is represented as:

Assets = Liabilities + Owner's Equity

To record the beginning account balance for Post Company, you would allocate the amounts under the appropriate elements of the equation. For example, if the beginning account balance for assets is $50,000, you would record it as:

Assets = $50,000

To record revenue, expense, and dividend events, you would allocate them under the appropriate elements as well. At the end of Year 2, the total of each side of the equation should be equal to maintain the balance.