Hart, Attorney at Law, experienced the following transactions in Year 1, the first year of operations:

1. Accepted $15,700 on April 1, Year 1, as a retainer for services to be performed evenly over the next 12 months.
2. Performed legal services for cash of $67,500.
3. Purchased $1,250 of office supplies on account.
4. Paid $1,125 of the amount due on accounts payable.
5. Paid a cash dividend to the stockholders of $4,000.
6. Paid cash for operating expenses of $18,400.
7. Determined that at the end of the accounting period $115 of office supplies remained on hand.
8. On December 31, Year 1, recognized the revenue that had been earned for services performed in accordance with Transaction 1.