5.

Waddell Company had the following balances in its accounting records as of December 31, 2018:

Assets				Liabilities and Equity
Cash	$	55,000		Accounts Payable	$	22,000
Accounts Receivable		46,000		Common Stock		91,000
Land		25,000		Retained Earnings		13,000
Totals	$	126,000			$	126,000

The following accounting events apply to Waddell Companys 2019 fiscal year:

Jan.	1		Acquired $44,000 cash from the issue of common stock.
Feb.	1		Paid $5,700 cash in advance for a one-year lease for office space.
Mar.	1		Paid a $2,600 cash dividend to the stockholders.
April	1		Purchased additional land that cost $25,000 cash.
May	1		Made a cash payment on accounts payable of $18,000.
July	1		Received $7,600 cash in advance as a retainer for services to be performed monthly over the coming year.
Sept.	1		Sold land for $21,000 cash that had originally cost $21,000.
Oct.	1		Purchased $1,120 of supplies on account.
Dec.	31		Earned $58,000 of service revenue on account during the year.
	31		Received cash collections from accounts receivable amounting to $60,000.
	31		Incurred other operating expenses on account during the year that amounted to $11,000.
	31		Recognized accrued salaries expense of $4,900.
	31		Had $160 of supplies on hand at the end of the period.
	31		The land purchased on April 1 had a market value of $36,000.
	31		Recognized $116 of accrued interest revenue.

1.

Required

Based on the preceding information, answer the following questions for Waddell Company. All questions pertain to the 2018 financial statements. (Hint: Enter items in general ledger accounts under the accounting equation before answering the questions.)

1. What two additional adjusting entries need to be made at the end of the year?

2. What amount would Waddell report for land on the balance sheet?

3. What amount of net cash flow from operating activities would be reported on the statement of cash flows? (Enter cash outflows as negative amounts.)

4. What amount of rent expense would be reported on the income statement? (Do not round intermediate calculations.)

5. What amount of total liabilities would be reported on the balance sheet?

6. What amount of supplies expense would be reported on the income statement?

7. What amount of unearned revenue would be reported on the balance sheet? (Do not round intermediate calculations.)

8. What amount of net cash flow from investing activities would be reported on the statement of cash flows? (Enter cash outflows as negative amounts.)

9. What amount of total expenses would be reported on the income statement? (Do not round intermediate calculations.)

10. What total amount of service revenue would be reported on the income statement? (Do not round intermediate calculations.)

11. What amount of cash flows from financing activities would be reported on the statement of cash flows? (Enter cash outflows as negative amounts.)

12. What amount of net income would be reported on the income statement? (Do not round intermediate calculations.)

13. What amount of retained earnings would be reported on the balance sheet? (Do not round intermediate calculations.)

Feb. 1, prepaid rent	not attempted
June 1, cash dividends to stockholders	not attempted
Aug. 1, cash payment; accounts payable	not attempted
July 1, unearned revenue; cash was received in advance	not attempted
Oct. 1, purchases on account	not attempted
Dec. 31, accrued salaries expense

2.

b.	Land	not attempted
c.	Net cash flow from operating activities	not attempted
d.	Rent expense	not attempted
e.	Total liabilities	not attempted
f.	Supplies expense	not attempted
g.	Unearned revenue	not attempted
h.	Net cash flow from investing activities	not attempted
i.	Total expenses	not attempted
j.	Service revenue	not attempted
k.	Cash flows from financing activities	not attempted
l.	Net income	not attempted
m.	Retained earnings