Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hart, Attorney at Law, experienced the following transactions in Year 1 , the first year of operations: Accepted $ 3 6 , 0 0 0

Hart, Attorney at Law, experienced the following transactions in Year 1, the first year of operations:
Accepted $36,000 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 $54,000.
Purchased $2,800 of office supplies on account.
Paid $2,400 of the amount due on accounts payable.
Paid a cash dividend to the stockholders of $5,000.
Paid cash for operating expenses of $31,000.
Determined that at the end of the accounting period $200 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 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
\table[[HART ATTORNEY AT LAW],[Event,Assets,\table[[=
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Contemporary Auditing Issues And Cases

Authors: Michael Chris Knapp

3rd Edition

0538891173, 9780538891172

More Books

Students also viewed these Accounting questions