HART, ATTORNEY AT LAW

Effect of Transactions on the Financial Statements for Year $1$

$\backslash$table$[[$Transaction$,$Balance Sheet,Income Statement,$\{$

$\backslash$table$[[$Statement of Cash$],[$Flows$]]\}],[$Assets$,\backslash$table$[[=],[=]],$Liabilities,$+,\backslash$table$[[\backslash$table$[[$Stockholders$\text{'}],[$Equity$]]],[$Retained$],[$Earnings$]],$Revenue,$-,$Expense,$=,$Net Income$],[$Cash$,+,$Supplies,$\backslash$table$[[$Accounts$],[$Payable$]],+,\backslash$table$[[$Unearned$],[$Revenue$]]],[1.,16,800,+,,=,,+,16,800,+,,,-,,=,,16,800,$OA$],[2.,,+,,=,,+1,,+1,,,-,,=,,,],[3.,,+,,=,,+1,,+1,,,-,,=,,,],[4.,,+,,=,,+1,,+,,,-,,=,,,],[5.,,+,,=,,+,,+,,,-,,=,,,],[6.,,+,,=,,+,,+,,,-,,=,,,],[7.,,+,,=,,+,,+,,,-,,=,,,],[8.,,+,,=,,+$i$,,+,,,-,,=,,,],[$Totals$,,+,,=,,+,,+,,,-,,=,,,]]$Hart$,$ Attorney at Law, experienced the following transactions in Year $1,$ the first year of operations:

Accepted $$16,800$ on April $1,$ Year $1,$ as a retainer for services to be performed evenly over the next $12$ months.

Performed legal services for cash of $$68,000.$

Purchased $$1,450$ of office supplies on account.

Paid $$1,305$ of the amount due on accounts payable.

Paid a cash dividend to the stockholders of $$4,800.$

Paid cash for operating expenses of $$18,600.$

Determined that at the end of the accounting period $$110$ of office supplies remained on hand.

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 a horizontal statements model.