Hart, Attorney at Law, experienced the following transactions in Year 1, the first year of operations: 1. Accepted $15,300 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 $68,000. 3. Purchased $1,400 of office supplies on account. 4. Paid $1,260 of the amount due on accounts payable. 5. Paid a cash dividend to the stockholders of $4,900. 6. Paid cash for operating expenses of $20,300. 7. Determined that at the end of the accounting period $120 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 Required: Show the effects of the events on the financial statements using a horizontal statements model. The first event has been recorded as an example Note: In the Statement of Cash Flows column, use the initials 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 require input. Answer is complete but not entirely correct. HART, ATTORNEY AT LAW Effect of Transactions on the Financial Statements for Year 1 Balance Sheet Income Statement Assets Liabilities + Transaction Cash 1 15,300 ++ Supplies 13 Accounts Payable Unearned Revenue Stockholders' Equity Retained Earnings Revenue Expense Net Income Statement of Cash Flows + 15,300 + 15,300 OA 2 68,000 + 0 = 0 + 0 + 68,000 68,000 0 68,000 68,000 OA 3 0 + 1,400 1,400 + 0 + 0 0 0 4 (1,260) + 0 = (1,260) 1+ 0 + 0 0 0 = 0 (1,260) OA 5 (4,900) + 6 (20,300) + 7 0+ 8 0 + 0 = 0 = (1,280)= 0 0 + 0 + (4,900) 0 0 0 (4,900) FA 0 0 + (20,300) 0 20,300 = (20,300) (20,300) OA 0 + 0 + (1,280) 0 (1,280) = (1,280) 0 0 + (3,825)+ 3,825 3.825x 0 = 3,825 0 Totals 56,840 120 140 + 11,475 + 45,345 71,825 19,020 + 50,245 56,840 NC