Exercise 3-8A Unearned revenue and the financial statements model LO 3-3 42 Clark Bell started a personal financial planning business when he accepted $59,000 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. (Do not round intermediate calculations. Enter any decreases to account balances and cash outflows with a minus sign. Not all cells in the "Statement of Cash Flows column may require an input - leave cells blank If there is no corresponding input needed.) CLARK BELL PERSONAL FINANCIAL PLANNING Horizontal Statements Model for Year 1 Balance Sheet Income Statement Liabilities Stockholders Revenue Equity Expense Net Income Unearned Retained Revenue Earnings Event Assets Statement of Cash Flows Cash 1. Advance payment 2 Revenue earned Totals 0 01 0 0