Exercise 3-8A (Algo) Unearned revenue and the financial statements model LO 3-3 Clark Bell started a personal financial planning business when he accepted $55,000 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 a horizontal statements model given below. In the Statement of Cash Flows column, use OA to designate operating activity, IA for investing activity, FA for financing activity, and NC for net change in cash. Note: Do not round intermediate calculations and round your final answers to nearest whole number. Enter any decreases to account balances and cash outflows with a minus sign. Not all cells require input. CLARK BELL PERSONAL FINANCIAL PLANNING Horizontal Statements Model for Year 1 Balance Sheet Stockholders' Income Statement Assets Liabilities Event Equity Unearned. Retained Cash Revenue Statement of Cash Flows Expense Net Income Revenue Earnings 1. Advance payment 2. Revenue earned Totals 0 0+ 0 0 0 0 0 b. How much revenue would Bell recognize on the Year 2 income statement? Note: Do not round intermediate calculations and round your final answer to nearest whole number. Revenue to be recognized in Year 2 c. What is the amount of cash flow from operating activities in Year 2? Amount of cash flow from operating activities