Exercise 2-15A (Static) Supplies, unearned revenue, and the financial statements model LO 2-5, 2-7 Hart, Attorney at Law, experienced the following transactions in Year 1, the first year of operations: 1. Accepted $36,000 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 $54,000. 3. Purchased $2,800 of office supplies on account. 4. Paid $2,400 of the amount due on accounts payable. 5. Paid a cash dividend to the stockholders of $5,000. 6. Paid cash for operating expenses of $31,000. 7. Determined that at the end of the accounting period $200 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. Required Show the effects of the events on the financial statements using the following horizontal statements model. In the Cash Flows column, use OA to designate operating activity, FA for financing activity, IA for investing activity, or NC for net change in cash. If the element is not affected by the event, leave the cell blank. The first event has been recorded as an example. (Do not round intermediate calculations. Enter any decreases to account balances and cash outflows with a minus sign. Not all cells will require entry.) HART, ATTORNEY AT LAW Effect of Transactions on the Financial Statements for Year 11 Balance Sheet Income Statement Assets Liabilities Accounts Unearned Event No. Cash Supplies Payable Revenue 1. 36,000 2 54,000+ Stockholders' Equity Retained Revenue Expense Earnings Net Income 36,000+ 54,000 54,000 Statement of Cash Flow 36,000 OA 54,000 54,000 QA 3. 2,800 4. (2,400)+ 2.800+ (2,400)+ (2,400) OA 5 (5,000) (5,000) (5,000) FA 6. (31,000) (31,000) 27,000 31,000 (31,000) (31,000) OA 7 (2.600) (2,600) 81,000 2,600 (2.600) 8. 200 400+ (27,000)+ 27,000 27,000 27,000 Totals 51,000+ 400- 800 9,000 42,400 189,000 33,600 47,400 51,600