Waddell Company had the following balances in its accounting records as of December 31, Year 1: The

Question:

Waddell Company had the following balances in its accounting records as of December 31, Year 1:

Liabilities and Equity Accounts Payable Common Stock Retained Earnings Total Assets Cash Accounts Receivable $ 7,500 $35

The following accounting events apply to Waddell Company’s Year 2 fiscal year:

Jan. 1 Acquired $20,000 cash from the issue of common stock.
Mar. 1 Paid a $2,000 cash dividend to the stockholders.
April 1 Purchased additional land that cost $15,000 cash.
May 1 Made a cash payment on accounts payable of $5,500.
Sept. 1 Sold land for $30,000 cash that had originally cost $30,000.
Dec. 31 Earned $58,000 of service revenue on account during the year.
31 Received cash collections from accounts receivable amounting to $46,000.
31 Incurred other operating expenses on account during the year that amounted to $28,000.
31 The land purchased on April 1 had a market value of $20,000.

Required
Based on the preceding information, answer the following questions for Waddell Company. All questions pertain to the Year 2 financial statements. (Hint: Enter items in general ledger accounts under the horizontal financial statements model before answering the questions.)
a. What amount would Waddell report for land on the balance sheet?
b. What amount of net cash flow from operating activities would be reported on the statement of cash flows?
c. What amount of total liabilities would be reported on the balance sheet?
d. What amount of net cash flow from investing activities would be reported on the statement of cash flows?
e. What amount of total expenses would be reported on the income statement?
f. What amount of service revenue would be reported on the income statement?
g. What amount of cash flows from financing activities would be reported on the statement of cash flows?
h. What amount of net income would be reported on the income statement?
i. What amount of retained earnings would be reported on the balance sheet?

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