Hart, Attorney at Law, experienced the following transactions in 2016, the first year of operations:

1.	Accepted $36,000 on April 1, 2016, as a retainer for services to be performed evenly over the next 12 months.
2.	Performed legal services for cash of $54,000.
3.	Purchased $2,800 of office supplies on account.
4.	Paid $2,400 of the amount due on accounts payable.
5.	Paid a cash dividend to the stockholders of $5,000.
6.	Paid cash for operating expenses of $31,000.
7.	Determined that at the end of the accounting period $200 of office supplies remained on hand.
8.	On December 31, 2016, 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 like the following one. In the Cash Flow column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, NC for net change in cash and NA to indicate accounts not affected by the event. The first event has been recorded as an example. (Do not round intermediate calculations. Enter any decreases to account balances and cash outflows with a minus sign.)

HART ATTORNEY AT LAW

Effect of Transactions on the Financial Statements for 2016

Transaction

Assets

=

Liabilities

+

Stockholders' Equity

Income Statement

Statement of Cash Flow

Cash

+

Supplies

=

Accounts Payable

+

Unearned Revenue

+

Retained Earnings

Revenue

Expense

=

Net Income

1.

36,000

+

=

+

36,000

+

=

36,000

OA

2.

+

=

+

+

=

OA

3.

+

=

+

+

=

NA

4.

+

=

+

+

=

OA

5.

+

=

+

+

=

FA

6.

+

=

+

+

=

OA

7.

+

=

+

+

=

NA

8.

+

=

+

+

=

NA

Totals

36,000

+

0

=

0

+

36,000

+

0

0

0

=

0

36,000

NC