Exercise 2-4 Effect of accounts receivable and accounts payable transactions on financial statements LO 2-1, 2-2 The following events apply to Lewis and Harper, a public accounting firm, for the 2018 accounting period: 1. Performed $109,500 of services for clients on account. 2. Performed $59,000 of services for cash. 3. Incurred $66,000 of other operating expenses on account 4. Paid $24,500 cash to an employee for salary 5. Collected $73,000 cash from accounts receivable. 6. Paid $22,000 cash on accounts payable. 7. Paid a $7,000 cash dividend to the stockholders. 8. Accrued salaries were $5,800 at the end of 2018 Required o Show the effects on the financial statements using a horizontal statements model like the following one. In the cash flow column use OA to designate operating activity, IA for investing activity, FA for financing activity, or NC for net change. If the element is not affected by the event, leave the cell blank. The first transaction is shown as an example, b. What is the amount of total assets at the end of 2018? c. What is the balance of accounts receivable at the end of 2018? d. What is the balance of accounts payable at the end of 2018? e. What is the net income for 2018? f. What is the amount of net cash flow from operating activities for 2018? Complete this question by entering your answers in the tabs below. ReqA Req B to G 1. What is the amount of net can now from operating activities for U Complete this question by entering your answers in the tabs below. ReqA Reg tog Show the effects on the financial statements using a horizontal statements made the following one in the cash flow com activity. FA for financing activity or NC for not change. If the element is not affected by the event the n . The Input.) e At de transaction is show r f or n LEWIS AND FUPER States Model For Accounting Year 2018 V pens a r Retained Pets 109 500 109 500 + F + Regto G ULUVY, PA 10F inancing activity, or NC for net change. If the elemen wwwyure event, leave the cell blank. The first transaction is shown as an example, b. What is the amount of total assets at the end of 2018? c What is the balance of accounts receivable at the end of 2018? d. What is the balance of accounts payable at the end of 2018? e. What is the net income for 2018? f. What is the amount of net cash flow from operating activities for 2018? Complete this question by entering your answers in the tabs below. RegA Reg B to G * *** ****** * ***** What is the amount of total assets, balance of accounts receivable, accounts payable, net income and net cash flow from operating activities at the end of 2018? b. Total assets c Accounts receivable d. Accounts payable Net Income g Net cash flow from operating activities for 2018