Exercise 13-22A Recording events in the general journal, posting to T-accounts, and preparing closing entries LO 13-1, 13-2, 13-3, 13-4

Required information Exercise 13-22A Recording events in the general journal, posting to T-accounts, and preparing closing entries LO 13-1, 13-2, 13-3, 13-4 [The following information applies to the questions displayed below.] At the beginning of Year 2, Oak Consulting had the following normal balances in its accounts: Account Cash Accounts receivable Accounts payable Common stock Retained earnings Balance $ 27,700 21,700 14,200 22,600 12,600 The following events apply to Oak Consulting for Year 2: 1. Provided $66,100 of services on account. 2. Incurred $3,000 of operating expenses on account. 3. Collected $48,000 of accounts receivable. 4. Paid $30,600 cash for salaries expense. 5. Paid $15,480 cash as a partial payment on accounts payable. 6. Paid a $9,900 cash dividend to the stockholders. Exercise 13-22A Part c c. Show the effect of above adjustment in a horizontal statements model. (Enter any decreases to account balances and cash outflows with a minus sign. In the Statement of Cash Flows column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, and NC for net change in cash. Not all cells in the "Statement of Cash Flows" column may require an input - leave cells blank if there is no corresponding input needed.) Answer is not complete. Net Income OAK CONSULTING Effect of Transactions on the Financial Statements for Year 2 Balance Sheet Income Statement Liabilities Stockholders' Equity Revenue - Expenses Accounts Common Retained Payable Stock Earnings 14,200 + 22,600 + 12,600 66,100 3,000 3,000 = Statement of Cash Flows Cash + Assets Accounts Receivable + 21,700 66,100 No Bal. 27,700 + + + 66,100 (3,000) + + + + (48,000) + + 48,000 + + + 30,600 (30,600) 48,000 (30,600) (15,480) (9,900) 19,720 + (15,480) + + 6 + FA NC + + (9,900) 2,700 Bal. 39,800 1,720 66,100 22,600 - 33,600 = 32,500 + 48,000 + +