The following events apply to Lewis and Harper, a public accounting firm, for the Year 1...

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The following events apply to Lewis and Harper, a public accounting firm, for the Year 1 accounting period: 1. Performed $109,500 of services for clients on account. 2. Performed $59,000 of services for cash. 3. Incurred $66,000 of other operating expenses on account. 4. Paid $24,500 cash to an employee for salary. 5. Collected $73,000 cash from accounts receivable. 6. Paid $22,000 cash on accounts payable. 7. Paid a $7,000 cash dividend to the stockholders. 8. Accrued salaries were $5,800 at the end of Year 1. Required a. Show the effects on the financial statements using the following horizontal statements model. In the cash flow column, use OA to designate operating activity, IA for investing activity, FA for financing activity, or NC for net change. If the element is not affected by the event, leave the cell blank. The first transaction is shown as an example. b. What is the amount of total assets at the end of Year 1? c. What is the balance of accounts receivable at the end of Year 1? d. What is the balance of accounts payable at the end of Year 1? f. What is the net income for Year 1? g. What is the amount of net cash flow from operating activities for Year 1? Complete this question by entering your answers in the tabs below. Req A Req B to D Req F to G Show the effects on the financial statements using the following horizontal statements model. In the cash flow column, use OA to designate operating activity, IA for investing activity, FA for financing activity, or NC for net change. If the element is not affected by the event, leave the cell blank. The first transaction is shown as an example. (Not all cells will require input. Enter any decreases to account balances with a minus sign.) Assets Event No. LEWIS AND HARPER Horizontal Statements Model For Accounting Year 1 Stockholders' Equity Cash 1. + Accounts Receivable 109,500 = 2. Liabilities Income Statement Statement of Cash Accounts Payable Salaries Payable Retained Flow Revenue Earnings Expense = Net Income + 109,500 109,500- = 109,500 = 3. + = + = 4. = + 5. + = + = 6. + = + + = 7 + 8. Totals 0+ 109,500 = 0+ 0+ 109,500 109,500 0 = 109,500 < Req A Req B to D > Show less The following events apply to Lewis and Harper, a public accounting firm, for the Year 1 accounting period: 1. Performed $109,500 of services for clients on account. 2. Performed $59,000 of services for cash. 3. Incurred $66,000 of other operating expenses on account. 4. Paid $24,500 cash to an employee for salary. 5. Collected $73,000 cash from accounts receivable. 6. Paid $22,000 cash on accounts payable. 7. Paid a $7,000 cash dividend to the stockholders. 8. Accrued salaries were $5,800 at the end of Year 1. Required a. Show the effects on the financial statements using the following horizontal statements model. In the cash flow column, use OA to designate operating activity, IA for investing activity, FA for financing activity, or NC for net change. If the element is not affected by the event, leave the cell blank. The first transaction is shown as an example. b. What is the amount of total assets at the end of Year 1? c. What is the balance of accounts receivable at the end of Year 1? d. What is the balance of accounts payable at the end of Year 1? f. What is the net income for Year 1? g. What is the amount of net cash flow from operating activities for Year 1? Complete this question by entering your answers in the tabs below. Req A Req B to D Req F to G Show the effects on the financial statements using the following horizontal statements model. In the cash flow column, use OA to designate operating activity, IA for investing activity, FA for financing activity, or NC for net change. If the element is not affected by the event, leave the cell blank. The first transaction is shown as an example. (Not all cells will require input. Enter any decreases to account balances with a minus sign.) Assets Event No. LEWIS AND HARPER Horizontal Statements Model For Accounting Year 1 Stockholders' Equity Cash 1. + Accounts Receivable 109,500 = 2. Liabilities Income Statement Statement of Cash Accounts Payable Salaries Payable Retained Flow Revenue Earnings Expense = Net Income + 109,500 109,500- = 109,500 = 3. + = + = 4. = + 5. + = + = 6. + = + + = 7 + 8. Totals 0+ 109,500 = 0+ 0+ 109,500 109,500 0 = 109,500 < Req A Req B to D > Show less

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The completed horizontal statements model Assets Event No Cash 1 59000 Accounts Receivable 109500 LE... View the full answer