Answer:
Better Corp. (BC)
a. Accounting Equation
Assets                =       Liabilities       +               Equity
1. Cash $7,000                                                   Common stock $7,000
2. Cash $12,000        Bank loan payable $12,000
3. Cash $47,000                                                Service Revenue $47,000
4. Cash ($30,000)                                              Op. expenses ($30,000)
5. Cash ($8,000)                                                Cash dividend ($8,000)
6. Land $20,000 Cash ($20,000)
Assets $28,000   =  Liabilities $12,000  + Equity $16,000
b. December 31, Year 1 Balances:
Total assets = $28,000
Total liabilities = $12,000
Stockholders' equity = $16,000
Balance Sheet as of December 31, Year 1
Assets:
Cash                     $8,000
Land                  $20,000
Total assets      $28,000
Liabilities:
Bank loan         $12,000
Equity:
Common stock $7,000
R/Earnings          9,000
Total equity    $16,000
Liabilities and
  Equity          $28,000      
c. January 1, Year 2 Balances:
Total assets = $28,000
Total liabilities = $12,000
Total equity = $16,000
d. The Land will be shown on the December 31, Year balance sheet at $20,000.  The reason is that this is the acquisition cost and the land is not held for trading (no information provided).
Explanation:
a) Data and Analysis based on the Accounting Equation:
1. Cash $7,000 Common stock $7,000
2. Cash $12,000 Bank loan payable $12,000
3. Cash $47,000 Service Revenue $47,000
4. Cash ($30,000) Operating expenses ($30,000)
5. Cash ($8,000) Cash dividend ($8,000)
6. Land $20,000 Cash ($20,000)