Question: I need help completing this question. As you can see, I have filled the table as much as possible however I am clearly missing a
I need help completing this question. As you can see, I have filled the table as much as possible however I am clearly missing a few things as it informs me that the answer is incomplete.
1. Accepted $16,600 on April 1, Year 1, as a retainer for services to be performed evenly over the next 12 months. 2. Performed legal services for cash of $66,000. 3. Purchased $1,300 of office supplies on account. 4. Paid $1,170 of the amount due on accounts payable. 5. Paid a cash dividend to the stockholders of $4,900. 6. Paid cash for operating expenses of $21,000. 7. Determined that at the end of the accounting period $135 of office supplies remained on hand. 8. On December 31, Year 1, recognized the revenue that had been earned for services performed in accordance with Transaction 1. Required Show the effects of the events on the financial statements using the following horizontal statements model. In the Cash Flows column, use OA to designate operating activity, FA for financing activity, IA for investing activity, or NC for net change in cash. If the element is not affected by the event, leave the cell blank. 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. Not all cells will require entry.) Answer is not complete. Assets + Statement of Cash Flow Event No. Cash + Supplies + Net Income + + 1 2 16,600 66,000 HART, ATTORNEY AT LAW Effect of Transactions on the Financial Statements for Year 1 Balance Sheet Income Statement Liabilities Stockholders' Equity Accounts Unearned Retained Revenue Payable Expense Revenue Earnings 16,600 + 66,000 66,000 - 1,300 + (1,170) + (4,900) (21,000) 21,000 = (1,165) 1,165 12,450 130 16.600 51,385 66,000 22,165 16,600 66.000 OA + + + = 66,000 3. + 1,300 = + = 4 + + = (1,170) (4,900) (21,000) + + + 5. 6. 6 + + + + (1,170) OA (4,900) FA (21,000) (21,000) (1,165) 12,450 56,285 55,530 NC 7. + (1,165) = + + 8. + + + = Totals 55,530 + 135 = + + =
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
