2 Exercise 2-15A (Algo) Supplies, unearned revenue, and the financial statements model LO 2-5, 2-7 10 points Hart, Attorney at Law, experienced the following transactions in Year 1, the first year of operations 300 1. Accepted $19,00 on April 1, Yeat 1, as a retainer for services to be performed evenly over the next 12 months. 2. Performed legal services for cash of $61.000. 3. Purchased $1,400 of office supplies on account 4. Paid $1,260 of the amount due on accounts payable 5. Paid a cash dividend to the stockholders of $5100 6. Paid cash for operating expenses of $19.900 7. Determined that at the end of the accounting period $105 of office supplies remained on hand. B. On December 31, Year 1. recognized the revenue that had been earned for services performed in accordance with Transaction 1 ce 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 not 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) Statement of Cash Flow Event 1 2 MURT, ATTORNEY AT LAW Effect of Transactions on the Financial Statements for Year 1 Balance Sheet Income Statement Lab Stockholder Equity Accounts Ungana Relined Paatile Revenue Elaming Eupen - Net Income 19,100 61.000 7,400 (1.2003 Gail Supplies 19,100- 61.000 1400 11260 15,100 (19.00 11.295 10,100 O 01.000 OA 4 11.2001 OA 15.100 7 10.000 1.295 Total 50 105 - 140 19,100- 15.100) 01.000 21.1956 78140