1 Assets Liabilities and Equity Accounts payable Common stock Cash $35,000 9,000 $ 7,500 40,000 47,500 Accounts receivable Land 51,000 $95,000 Retained earnings Total Total $95,000 oints The following accounting events apply to Waddell Company's Year 2 fiscal year eBook Jan. 1 Acquired $20,000 cash from the issue of common stock. 1 Paid a $2,000 cash dividend to the stockholders. 1 Purchased additional land that cost $15,000 cash 1 Made a cash payment on accounts payable of $5,500 1 Sold land for $30,000 cash that had originally cost $30,000 31 Earned $58,000 of service revenue on account during the year. 31 Received eash collections fron accounts receivable anounting to $46,000 31 Incurred other operating expenses on aceount during the year that anounted to $28,000. 31 The land purchased on April 1 had a market value of $20,000 References Mar. April May Sept. Dec. Required Show the effects of the events on the financial statements using a horizontal financial statements model like the following one. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, and NC for net change in cash. The first event is recorded as an example. 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 fiow 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? WADELL COMPANY Horizontal Financial Statements Model for Year 2 Income Statement Balance Sheet Statement of Cash Flows Net Income Expenses Stockholders' Equity Revenue Assets Liabilities Accounts Payable Date Common Retained Accounts Cash Land Earnings Recelvable Stock eg 1/1 3/1 + 4/1 + 5/1 + 9/1 12/31 12/31 12/31 12/31 Totals > Reg A to Accouning toution eBook References Land . Net cash flow from operating activities b Total liabilities C. Net cash flow from investing activities d. Total expenses Total revenue Cash flows from financing activities Net income h. Retained earnings i Accounting Equation Req A to