Ross, Attorney at Law, experienced the following transactions in 2014, the first year of operations: 1....

 

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Ross, Attorney at Law, experienced the following transactions in 2014, the first year of operations: 1. Purchased $1,500 of office supplies on account. 2. Accepted $36,000 on February 1, 2014, as a retainer for services to be performed evenly over the next 12 months. 3. Performed legal services for cash of $84,000. 4. Paid cash for salaries expense of $32,000. 5. Paid a cash dividend to the stockholders of $8,000. 6. Paid $1,200 of the amount due on accounts payable. 7. Determined that at the end of the accounting period, $150 of office supplies remained on hand. 8. On December 31, 2014, recognized the revenue that had been earned for services performed in accordance with Transaction 2. Required Show the effects of the events on the financial statements using a horizontal statements model like the following one. In the Cash Flow column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, NC for net change in cash and NA to indicate accounts not affected by the event. The first event has been recorded as an example. (Do not round intermediate calculations. Enter any decreases to account balances and cash outflows with a minus sign.) ROSS, ATTORNEY AT LAW Effect of Transactions on the Financial Statements for 2014 Stockholders' Equity Assets Liabilities Income Statement Statement of Cash Flow Transaction Accounts Unearned Retained Cash Supplies Revenue Expense = Net Income Payable 1,500 + Revenue Earnings 1. 1,500 = NA 2. 36,000+ 36.000 + OA 3. 84,000 + 84,000- OA %3D 4. (32,000)+ 32,000 = OA %3D (8,000)+ (1,200) + FA OA 5. (8,000) 6. (1,200) NA wwwww ENA 7. (1,350)= 1,350 = + (33,000) + 3,000 + 8. + 33,000 Totals 78,800 + 150 = 300 + (8,000)| 117,000 33,350 = Required a. Identify which of the following accounts are temporary (will be closed to Retained Earnings at the end of the year) and which are permanent: Account Classification (1) Service Revenue (2) Dividends (3) Common Stock (4) Notes Payable (5) Cash (6) Rent Expense (7) Accounts Receivable (8) Utilities Expense (9) Prepaid Insurance (10) Retained Earnings Ross, Attorney at Law, experienced the following transactions in 2014, the first year of operations: 1. Purchased $1,500 of office supplies on account. 2. Accepted $36,000 on February 1, 2014, as a retainer for services to be performed evenly over the next 12 months. 3. Performed legal services for cash of $84,000. 4. Paid cash for salaries expense of $32,000. 5. Paid a cash dividend to the stockholders of $8,000. 6. Paid $1,200 of the amount due on accounts payable. 7. Determined that at the end of the accounting period, $150 of office supplies remained on hand. 8. On December 31, 2014, recognized the revenue that had been earned for services performed in accordance with Transaction 2. Required Show the effects of the events on the financial statements using a horizontal statements model like the following one. In the Cash Flow column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, NC for net change in cash and NA to indicate accounts not affected by the event. The first event has been recorded as an example. (Do not round intermediate calculations. Enter any decreases to account balances and cash outflows with a minus sign.) ROSS, ATTORNEY AT LAW Effect of Transactions on the Financial Statements for 2014 Stockholders' Equity Assets Liabilities Income Statement Statement of Cash Flow Transaction Accounts Unearned Retained Cash Supplies Revenue Expense = Net Income Payable 1,500 + Revenue Earnings 1. 1,500 = NA 2. 36,000+ 36.000 + OA 3. 84,000 + 84,000- OA %3D 4. (32,000)+ 32,000 = OA %3D (8,000)+ (1,200) + FA OA 5. (8,000) 6. (1,200) NA wwwww ENA 7. (1,350)= 1,350 = + (33,000) + 3,000 + 8. + 33,000 Totals 78,800 + 150 = 300 + (8,000)| 117,000 33,350 = Required a. Identify which of the following accounts are temporary (will be closed to Retained Earnings at the end of the year) and which are permanent: Account Classification (1) Service Revenue (2) Dividends (3) Common Stock (4) Notes Payable (5) Cash (6) Rent Expense (7) Accounts Receivable (8) Utilities Expense (9) Prepaid Insurance (10) Retained Earnings Ross, Attorney at Law, experienced the following transactions in 2014, the first year of operations: 1. Purchased $1,500 of office supplies on account. 2. Accepted $36,000 on February 1, 2014, as a retainer for services to be performed evenly over the next 12 months. 3. Performed legal services for cash of $84,000. 4. Paid cash for salaries expense of $32,000. 5. Paid a cash dividend to the stockholders of $8,000. 6. Paid $1,200 of the amount due on accounts payable. 7. Determined that at the end of the accounting period, $150 of office supplies remained on hand. 8. On December 31, 2014, recognized the revenue that had been earned for services performed in accordance with Transaction 2. Required Show the effects of the events on the financial statements using a horizontal statements model like the following one. In the Cash Flow column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, NC for net change in cash and NA to indicate accounts not affected by the event. The first event has been recorded as an example. (Do not round intermediate calculations. Enter any decreases to account balances and cash outflows with a minus sign.) ROSS, ATTORNEY AT LAW Effect of Transactions on the Financial Statements for 2014 Stockholders' Equity Assets Liabilities Income Statement Statement of Cash Flow Transaction Accounts Unearned Retained Cash Supplies Revenue Expense = Net Income Payable 1,500 + Revenue Earnings 1. 1,500 = NA 2. 36,000+ 36.000 + OA 3. 84,000 + 84,000- OA %3D 4. (32,000)+ 32,000 = OA %3D (8,000)+ (1,200) + FA OA 5. (8,000) 6. (1,200) NA wwwww ENA 7. (1,350)= 1,350 = + (33,000) + 3,000 + 8. + 33,000 Totals 78,800 + 150 = 300 + (8,000)| 117,000 33,350 = Required a. Identify which of the following accounts are temporary (will be closed to Retained Earnings at the end of the year) and which are permanent: Account Classification (1) Service Revenue (2) Dividends (3) Common Stock (4) Notes Payable (5) Cash (6) Rent Expense (7) Accounts Receivable (8) Utilities Expense (9) Prepaid Insurance (10) Retained Earnings Ross, Attorney at Law, experienced the following transactions in 2014, the first year of operations: 1. Purchased $1,500 of office supplies on account. 2. Accepted $36,000 on February 1, 2014, as a retainer for services to be performed evenly over the next 12 months. 3. Performed legal services for cash of $84,000. 4. Paid cash for salaries expense of $32,000. 5. Paid a cash dividend to the stockholders of $8,000. 6. Paid $1,200 of the amount due on accounts payable. 7. Determined that at the end of the accounting period, $150 of office supplies remained on hand. 8. On December 31, 2014, recognized the revenue that had been earned for services performed in accordance with Transaction 2. Required Show the effects of the events on the financial statements using a horizontal statements model like the following one. In the Cash Flow column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, NC for net change in cash and NA to indicate accounts not affected by the event. The first event has been recorded as an example. (Do not round intermediate calculations. Enter any decreases to account balances and cash outflows with a minus sign.) ROSS, ATTORNEY AT LAW Effect of Transactions on the Financial Statements for 2014 Stockholders' Equity Assets Liabilities Income Statement Statement of Cash Flow Transaction Accounts Unearned Retained Cash Supplies Revenue Expense = Net Income Payable 1,500 + Revenue Earnings 1. 1,500 = NA 2. 36,000+ 36.000 + OA 3. 84,000 + 84,000- OA %3D 4. (32,000)+ 32,000 = OA %3D (8,000)+ (1,200) + FA OA 5. (8,000) 6. (1,200) NA wwwww ENA 7. (1,350)= 1,350 = + (33,000) + 3,000 + 8. + 33,000 Totals 78,800 + 150 = 300 + (8,000)| 117,000 33,350 = Required a. Identify which of the following accounts are temporary (will be closed to Retained Earnings at the end of the year) and which are permanent: Account Classification (1) Service Revenue (2) Dividends (3) Common Stock (4) Notes Payable (5) Cash (6) Rent Expense (7) Accounts Receivable (8) Utilities Expense (9) Prepaid Insurance (10) Retained Earnings Ross, Attorney at Law, experienced the following transactions in 2014, the first year of operations: 1. Purchased $1,500 of office supplies on account. 2. Accepted $36,000 on February 1, 2014, as a retainer for services to be performed evenly over the next 12 months. 3. Performed legal services for cash of $84,000. 4. Paid cash for salaries expense of $32,000. 5. Paid a cash dividend to the stockholders of $8,000. 6. Paid $1,200 of the amount due on accounts payable. 7. Determined that at the end of the accounting period, $150 of office supplies remained on hand. 8. On December 31, 2014, recognized the revenue that had been earned for services performed in accordance with Transaction 2. Required Show the effects of the events on the financial statements using a horizontal statements model like the following one. In the Cash Flow column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, NC for net change in cash and NA to indicate accounts not affected by the event. The first event has been recorded as an example. (Do not round intermediate calculations. Enter any decreases to account balances and cash outflows with a minus sign.) ROSS, ATTORNEY AT LAW Effect of Transactions on the Financial Statements for 2014 Stockholders' Equity Assets Liabilities Income Statement Statement of Cash Flow Transaction Accounts Unearned Retained Cash Supplies Revenue Expense = Net Income Payable 1,500 + Revenue Earnings 1. 1,500 = NA 2. 36,000+ 36.000 + OA 3. 84,000 + 84,000- OA %3D 4. (32,000)+ 32,000 = OA %3D (8,000)+ (1,200) + FA OA 5. (8,000) 6. (1,200) NA wwwww ENA 7. (1,350)= 1,350 = + (33,000) + 3,000 + 8. + 33,000 Totals 78,800 + 150 = 300 + (8,000)| 117,000 33,350 = Required a. Identify which of the following accounts are temporary (will be closed to Retained Earnings at the end of the year) and which are permanent: Account Classification (1) Service Revenue (2) Dividends (3) Common Stock (4) Notes Payable (5) Cash (6) Rent Expense (7) Accounts Receivable (8) Utilities Expense (9) Prepaid Insurance (10) Retained Earnings Ross, Attorney at Law, experienced the following transactions in 2014, the first year of operations: 1. Purchased $1,500 of office supplies on account. 2. Accepted $36,000 on February 1, 2014, as a retainer for services to be performed evenly over the next 12 months. 3. Performed legal services for cash of $84,000. 4. Paid cash for salaries expense of $32,000. 5. Paid a cash dividend to the stockholders of $8,000. 6. Paid $1,200 of the amount due on accounts payable. 7. Determined that at the end of the accounting period, $150 of office supplies remained on hand. 8. On December 31, 2014, recognized the revenue that had been earned for services performed in accordance with Transaction 2. Required Show the effects of the events on the financial statements using a horizontal statements model like the following one. In the Cash Flow column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, NC for net change in cash and NA to indicate accounts not affected by the event. The first event has been recorded as an example. (Do not round intermediate calculations. Enter any decreases to account balances and cash outflows with a minus sign.) ROSS, ATTORNEY AT LAW Effect of Transactions on the Financial Statements for 2014 Stockholders' Equity Assets Liabilities Income Statement Statement of Cash Flow Transaction Accounts Unearned Retained Cash Supplies Revenue Expense = Net Income Payable 1,500 + Revenue Earnings 1. 1,500 = NA 2. 36,000+ 36.000 + OA 3. 84,000 + 84,000- OA %3D 4. (32,000)+ 32,000 = OA %3D (8,000)+ (1,200) + FA OA 5. (8,000) 6. (1,200) NA wwwww ENA 7. (1,350)= 1,350 = + (33,000) + 3,000 + 8. + 33,000 Totals 78,800 + 150 = 300 + (8,000)| 117,000 33,350 = Required a. Identify which of the following accounts are temporary (will be closed to Retained Earnings at the end of the year) and which are permanent: Account Classification (1) Service Revenue (2) Dividends (3) Common Stock (4) Notes Payable (5) Cash (6) Rent Expense (7) Accounts Receivable (8) Utilities Expense (9) Prepaid Insurance (10) Retained Earnings

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