Required information [The following information applies to the questions displayed below.] At the beginning of Year...

Transcribed Image Text:

Required information [The following information applies to the questions displayed below.] At the beginning of Year 2, Oak Consulting had the following normal balances in its accounts: Account Balance Cash Accounts receivable Accounts payable Common stock Retained earnings $ 27,800 24,700 11,800 27,800 12,900 The following events apply to Oak Consulting for Year 2: 1. Provided $65,600 of services on account. 2. Incurred $3,000 of operating expenses on account. 3. Collected $45,000 of accounts receivable. 4. Paid $31,900 cash for salaries expense. 5. Paid $13,320 cash as a partial payment on accounts payable. 6. Paid a $9,900 cash dividend to the stockholders. c. Show the beginning balances and the transactions in a horizontal statements model. Note: Enter any decreases to account balances and cash outflows with a minus sign. In the Statement of Cash Flows column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, and NC for net change in cash. Not all cells require input. OAK CONSULTING Effect of Transactions on the Financial Statements for Year 2 Balance Sheet Linhilition Steakhaldar Canih Income Statement Statement of Cash c. Show the beginning balances and the transactions in a horizontal statements model. Note: Enter any decreases to account balances and cash outflows with a minus sign. In the Statement of Cash Flows column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, and NC for net change in cash. Not all cells require input. OAK CONSULTING Effect of Transactions on the Financial Statements for Year 2 Balance Sheet Income Statement Number Assets Cash Accounts Receivable Liabilities Accounts Payable Stockholders' Equity Statement of Cash Flows + Common Stock Retained Earnings Revenue Expenses Net Income Balance 1 2 3 4 5 6 Balance 0+ 0 = 0+ 0 + 0 0 Required information [The following information applies to the questions displayed below.] At the beginning of Year 2, Oak Consulting had the following normal balances in its accounts: Account Balance Cash Accounts receivable Accounts payable Common stock Retained earnings $ 27,800 24,700 11,800 27,800 12,900 The following events apply to Oak Consulting for Year 2: 1. Provided $65,600 of services on account. 2. Incurred $3,000 of operating expenses on account. 3. Collected $45,000 of accounts receivable. 4. Paid $31,900 cash for salaries expense. 5. Paid $13,320 cash as a partial payment on accounts payable. 6. Paid a $9,900 cash dividend to the stockholders. c. Show the beginning balances and the transactions in a horizontal statements model. Note: Enter any decreases to account balances and cash outflows with a minus sign. In the Statement of Cash Flows column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, and NC for net change in cash. Not all cells require input. OAK CONSULTING Effect of Transactions on the Financial Statements for Year 2 Balance Sheet Linhilition Steakhaldar Canih Income Statement Statement of Cash c. Show the beginning balances and the transactions in a horizontal statements model. Note: Enter any decreases to account balances and cash outflows with a minus sign. In the Statement of Cash Flows column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, and NC for net change in cash. Not all cells require input. OAK CONSULTING Effect of Transactions on the Financial Statements for Year 2 Balance Sheet Income Statement Number Assets Cash Accounts Receivable Liabilities Accounts Payable Stockholders' Equity Statement of Cash Flows + Common Stock Retained Earnings Revenue Expenses Net Income Balance 1 2 3 4 5 6 Balance 0+ 0 = 0+ 0 + 0 0