AI DUAL CAMERA SHOT ON MI MIX 25 Ex(2)-5 Continuation of Ex (2)-42nd Year Haibin Co., which began its operation in 2016 (see Part 1 above), continued in business during 2017. Assume the account balances at January 1, 2017, were: $100 Cash $18.000 Interest payable 5.000 Accounts receivable 1.000 Notes payable 10.000 Accounts payable 500 Common stock Wages payable 200 Retained Earnings 3.200 Haibin had the following cash transactions during 2017: 1. Pay the workers the $200 of wages that had been accrued at the end of 2016. 2. Purchased land for $8.000. 3. Provided service to customers for $10.000, cash. 4. Provided services to customers for $5.000, on account. 5. Haibin paid $5,300 to the bank in order to repay the $5,000 borrowed from the Local Bank in 2016, along with $300 of interest. 6. Incurred $4,000 of expenses on account. 7. Incurred $7,500 of cash expenses. 8. Collected $3.000 cash from accounts receivables. 9. Paid $2.500 cash on accounts payables. 10. Made a $2.000 distribution to the owners. 80 AI DUAL CAMERA SHOT ON MI MIX 25 Chapter 2 Accounting for Accrual Events Required 1. Explain how each of these transactions would affect Haibin's financial statements using the FSETs provided below. Use brackets, (), to indicate amounts being subtracted. 2. Prepare Haibin's income statement, balance sheet, and statement of cash flows for 2017 using the forms provided below. Forms for Requirement 1 Balance Sheet Income Statement SCF Assets=Liabilities+ Equity Revenues-Expenses=Net Earnings Cash Flow 1 2 3 4 5 6 7 9 10 Total Forms for Requirement 2