Clark Bell started a personal financial planning business when he accepted $52,000 cash as advance payment for managing the financial assets of a large estate. Bell agreed to manage the estate for a one-year period beginning June 1, Year 1. Required a. Show the effects of the advance payment and revenue recognition on the Year 1 financial statements using the following horizontal statements model. In the Cash Flows column, use OA to designate operating activity, IA for investing activity, FA for financing activity, and NC for net change in cash. If the account not affected, leave the cell blank. b. How much revenue would Bell recognize on the Year 2 income statement? c. What is the amount of cash flow from operating activities in Year 2? BELL PERSONAL FINANCIAL PLANNING Assets Liabilities Horizontal Statements Model for Year 1 Stockholders' + Income Statement Equity Retained + Revenue Earnings Expense Statement of Cash Flow Event Cash Unearned Revenue = Net Income 1. 52,000 = 52,000 + 0 0 0 II 0 52,000 Advance payment Revenue earned 2. 0 (30,333) + (30,333) X (30,333) X 0 = (30,333) X 0 Totals 52,000 = 21,667 + (30,333) (30,333) 0 (30,333) 52,000 NC How much revenue would Bell recognize on the Year 2 income statement? What is the amount of cash flow from operating activities in Year 2? (Do not round intermediate calculations and round your final answers to nearest whole dollar.) b. Revenue to be recognized in Year 2 Amount of cash flow from operating activities (30,333) $ 52,000 X C