Help, I'm stuck!
Waddell Company had the following balances in its accounting records as of December 31, Year 1: Assets Cash Accounts Receivable Land Totals $ 51,000 51,000 35,000 $137,000 Liabilities and Equity Accounts Payable Common Stock Retained Earnings $ 22,000 104,000 11,000 $137,000 The following accounting events apply to Waddell Company's Year 2 fiscal year: Jan. 1 Acquired $54,000 cash from the issue of common stock. Feb. 1 Paid $5,400 cash in advance for a one-year lease for office space. Mar. 1 Paid a $1,900 cash dividend to the stockholders. April 1 Purchased additional land that cost $35,000 cash. May 1 Made a cash payment on accounts payable of $15,000. July 1 Received $8,200 cash in advance as a retainer for services to be performed monthly over the coming year. Sept. 1 Sold land for $21,800 cash that had originally cost $21,000. Oct. 1 Purchased $1,060 of supplies on account. Dec. 31 Earned $61,000 of service revenue on account during the year. 31 Received cash collections from accounts receivable amounting to $63,000. 31 Incurred other operating expenses on account during the year that amounted to $13,000. 31 Recognized accrued salaries expense of $5,000. 31 Had $170 of supplies on hand at the end of the period. 31 The land purchased on April 1 had a market value of $38,000. 31 Recognized $126 of accrued interest revenue. Required Show the effects of the events on the financial statements using the following horizontal statements model. All questions pertain to the Year 2 financial statements. a. What two additional adjusting entries need to be made at the end of the year? b. What amount would Waddell report for land on the balance sheet? c. What amount of net cash flow from operating activities would be reported on the statement of cash flows? d. What amount of rent expense would be reported on the income statement? e. What amount of total liabilities would be reported on the balance sheet? f. What amount of supplies expense would be reported on the income statement? g. What amount of unearned revenue would be reported on the balance sheet? h. What amount of net cash flow from investing activities would be reported on the statement of cash flows? i. What amount of total expenses would be reported on the income statement? j. What total amount of service revenue would be reported on the income statement? k. What amount of cash flows from financing activities would be reported on the statement of cash flows? 1. What amount of net income would be reported on the income statement? m. What amount of retained earnings would be reported on the balance sheet? Accounting Equation Req A Reg B to M Show the effects of the events on the financial statements using the following horizontal statements model. All questions pertain to the Year 2 financial statements. (Do not decreases to account balances with a minus sign. Not all cells require input.) WADDELL COMPANY Accounting Equation Assets Date Accounts Cash Liabilities Salaries Payable Interest Receivable Supplies Receivable Prepaid Rent Land Accounts Payable 22,000 Unearned Revenue Stockholders' Equity Common Retained Stock + Earnings 104,000 + 11,000 54,000+ Bal. 51.000 35,000 = + + 5.700 - + + + (1,900) 51,000 54,000 (5,700) (1,900) (35,000) (15,000) 8,200 21,000 35,000) = Jan. 1 Feb. 1 Mar. 1 April 1 May 1 July 1 Sept. 1 Oct. 1 Dec. 31 + = (15.000) + 8,200 + + = (21,000) = + + 1,060 = 1,0601 + + 61,000 - 61.000 Dec 31 63,000 (63.000) = 13,000 - 5,000 (13,000) (5,000) (170) 126 (170) Dec 31 Dec. 31 Dec 31 Dec 31 Dec 31 Dec. 31 = 1261 = Dec. 31 Bal. 139,600 49,000 5,700 890 126 49,000 = 21.060 5,000 8.200 + 158,000 + 52,056 Complete this question by entering your answers in the tabs belo Accounting Equation Req A Req B to M What two additional adjusting entries need to be made at the end of the y true by selecting an "X".) Feb. 1, prepaid rent June 1, cash dividends to stockholders Aug. 1, cash payment; accounts payable July 1, uneared revenue, cash was received in advance Oct. 1, purchases on account Dec. 31, accrued salaries expense X Complete this question by entering your answers i Accounting Equation Req A Req B to M Refer to the Accounting Equation and transaction informat calculations. Enter cash outflows as negative amounts.) $ 49,000 b. Land c. Net cash flow from operating activities d. Rent expense e. Total liabilities f. Supplies expense 9. Unearned revenue h. Net cash flow from investing activities i. Total expenses j. Service revenue k Cash flows from financing activities 1. Net income m. Retained earnings
