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Exercise 2-9A (Algo) Effect of accounts receivable and accounts payable transactions on financial statements LO 2-1, 2-2, 2-3, 2-4 The following events apply to Lewis

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Exercise 2-9A (Algo) Effect of accounts receivable and accounts payable transactions on financial statements LO 2-1, 2-2, 2-3, 2-4 The following events apply to Lewis and Harper, a public accounting firm, for the Year 1 accounting period: 1. Performed $67,000 of services for clients on account. 2. Performed $42,000 of services for cash. 3. Incurred $32,000 of other operating expenses on account. 4. Paid $16,000 cash to an employee for salary. 5. Collected $50,000 cash from accounts receivable. 6. Paid $17,000 cash on accounts payable. 7. Paid an $5,000 cash dividend to the stockholders. 8. Accrued salaries were $2,400 at the end of Year 1 . Required: a. Show the effects of the events on the financial statements using the following horizontal statements model, In the Statement of Cash Fows column, use OA to designate operating activity, IA for investment activity. FA for financing activity, and NC for net change in cash. The first event is recorded as an example. b. What is the amount of total assets at the end of Year 1 ? c. What is the balance of accounts recelvable at the end of Year 1 ? d. What is the balance of accounts payable at the end of Year 1? f. What is net income for Year 1? 9. What is the amount of net cash flow from operating activities for Year 1 ? Show the effects of the events on the financial statements using the following horizontol statements model, in the Cash Flow column, use GA to designate eperating activity, 1 . sctivity, FA for financing activity, and NC for net change in cash. The first event is recorded as an example. Note: Enter any decreases to account balances with a minus sign. Not all celis in the "Statement of Cash Flows" colurnn may require an inpue - leave ceels biank if there is na input needed. Complete this question by entering your answers in the tabs below. b. What is the amount of total assets at the end of Year 1 ? c. What is the balance of accounts receivable at the end of Year 1 ? d. What is the balance of accounts payable at the end of Year 1? f. What is net income for Year 1 ? 9. What is the amount of net cash flow from operating activities for Year 1

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