! Required information Exercise 3-22A Recording events in the general journal, posting to T-accounts, and preparing closing entries LO 3-1, 3-2, 3-3, 3-4 [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 Cash Accounts receivable Accounts payable Common stock Retained earnings Balance $ 30,700 19,500 12,600 24,100 13,500 The following events apply to Oak Consulting for Year 2: 1. Provided $70,900 of services on account. 2. Incurred $3,400 of operating expenses on account. 3. Collected $50,700 of accounts receivable. 4. Paid $34,800 cash for salaries expense. 5. Paid $14,400 cash as a partial payment on accounts payable. 6. Paid a $9,400 cash dividend to the stockholders. Exercise 3-22A Part a Required Record these events in a general journal. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Provided $70,900 of services on account. Note: Enter debits before credits. Event General Journal Debit Credit 1 Record entry Clear entry View general journal Exercise 3-22A Part a Required Record these events in a general journal. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Incurred $3,400 of operating expenses on account. Note: Enter debits before credits. Event General Journal Debit Credit 2 Record entry Clear entry View general journal Exercise 3-22A Part a Required Record these events in a general journal. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Collected $50,700 of accounts receivable. Note: Enter debits before credits. Event General Journal Debit Credit 3 Record entry Clear entry View general journal Exercise 3-22A Part a Required Record these events in a general journal. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Paid $34,800 cash for salaries expense. Note: Enter debits before credits. Event General Journal Debit Credit 4 Record entry Clear entry View general journal Exercise 3-22A Part a Required Record these events in a general journal. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Paid $14,400 cash as a partial payment on accounts payable. Note: Enter debits before credits. Event General Journal Debit Credit 5 Record entry Clear entry View general journal Exercise 3-22A Part a Required Record these events in a general journal. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Paid an $9,400 cash dividend to the stockholders. Note: Enter debits before credits. Event General Journal Debit Credit 6 Record entry Clear entry View general journal Exercise 3-22A Part b b & d. Post the beginning balances and the transactions from Parts a&d to the appropriate accounts. Cash Accounts Receivable Beg. Bal Beg. Bal End. Bal End. Bal Accounts Payable Common Stock Beg. Bal Beg. Bal End. Bal End. Bal Retained Earnings Dividends Beg. Bal Beg. Bal End. Bal Bal Service Revenue Operating Expenses Beg. Bal Beg. Bal End. Bal End. Bal Salaries Expense Beg. Bal End. Bal Exercise 3-22A Part c c. Show the beginning balances and the events in a horizontal statements model such as the following one: (In the Cash Flow column, use the initials "OA" for operating activities, "FA" for financing activities and "NC" for net change in cash. Select "NA" wherever required. Enter any decreases to account balance and cash outflows with a minus sign.) OAK CONSULTING Effect of Transactions on the Financial Statements for Year 2 Balance Sheet Income Statement + Revenue Expenses Net Income Assets Accounts + Receivable Statement of Cash Flow Liabilities Accounts Payable Stockholders' Equity Common Retained Stock Earnings No Cash II + + Bal. + + + = 1 + = + + + + 2 + + + 3 + + + 4 + + + 5 + + + 6 + = + + + Bal. 0 + 0 = 0 + 0 + 0 0 0 0 0 Exercise 3-22A Part d d-1. Record the closing entries in the general journal. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the closure of service revenue. Note: Enter debits before credits. Event General Journal Debit Credit 1 Record entry Clear entry View general journal Exercise 3-22A Part d d-1. Record the closing entries in the general journal. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the closure of expenses account. Note: Enter debits before credits. Event General Journal Debit Credit 2 Record entry Clear entry View general journal Exercise 3-22A Part d d-1. Record the closing entries in the general journal. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet