Hart, Attorney at Low, experienced the following transactions in Year 1, the first year of operations: 1. Accepted $17,600 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 $66,500 3. Purchased $1,450 of office supplies on account 4. Paid $1,305 of the amount due on accounts payable. 5. Paid a cash dividend to the stockholders of $4,100. 6. Paid cash for operating expenses of $20,500. 7. Determined that at the end of the accounting period $140 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 HART, ATTORNEY AT LAW Effect of Transactions on the Financial Statements for Year 1 Balance Sheet Income Statement Liabilities Stockholders Revenue Equity Expense Accounts Unearned Retained Payable Revenue Earnings 17.600 Net Income Statement of Cash Flows Assets Transaction Cash Supplies 17,600 OA 17,600 1. 2 3 . 4 + 5. 5. 7 8 Totals