1. Accepted $18,800 on April 1, Year 1, as a retainer for services to be performed evenly over the next 12 months.
2. Performed legal services for cash of $64,500.
3. Purchased $1,250 of office supplies on account.
4. Paid $1,125 of the amount due on accounts payable.
5. Paid a cash dividend to the stockholders of $5,300.
6. Paid cash for operating expenses of $20,200.
7. Determined that at the end of the accounting period, $120 of office supplies remained on hand.
8. On December 31, Year 1, recognized the revenue that had been earned for services performed in accordance with Transaction 1.

HART ATTORNEY AT LAW Event Effect of Transactions on the Financial Statements for Year 1 Liabilities Stockholders' Income Statement Equity Accounts Unearned Retained Revenue - Expense = Net Income Payable Revenue Earnings 18,800 + Statement of Cash Flows Assets Cash + Supplies 18,800 = 18,800 OA | + + + + + + - n n won 1111 + + + + + + + + + + + + + + + Totals + + +