Waddell Company had the following balances in its accounting records as of December 31, Year 1: Assets Canh Accounts Receivable Land Totals $ 54,000 46,000 35,000 $135,000 Tibilities and Equity Accounts Payable Common Stock Retained Earnings $ 21,000 101,000 13,000 $135,000 The following accounting events apply to Waddell Company's Year 2 fiscal year: - Jan. 1 Acquired $45,000 canh trom the use of common stock Teb. 1 Paid $5,100 cash in advance for a one-year lease for office space. Mar. 1 Paid a $2,500 cash dividend to the stockholders. April 1 Purchased additional land that cont 535,000 canh. May 1 Made a cash payment on accounts payable of $10,000. July 1 Received 57,800 cash in advance as a retainer for services to be performed monthly over the coming year. Sept. 1 Bold land for $19,000 cash that had originally cost $19,000. Oct. 1Purchased $1,060 of supplies on account. Dec. 31 Earned $56,000 of service revenue on account during the year. 31 Received cash collections from accounts receivable amounting to $60,000. 31 Incurred other operating expenses on account during the year that amounted to $10,000. 31 Recognized accrued salaries expense of $4,900. 31 Had $130 of supplies on hand at the end of the period. 31 The land purchased on April 1 had a market value of $44,000 31 Recognized $128 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? 1. What amount of supplies expense would be reported on the income statement? 9. 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? 1. 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? Complete this question by entering your answers in the tabs below. Accounting Equation RA Regato 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 round Intermed decreases to account balances with a minus sign. Not al cells require input.) WADOELL COMPANY Accounting Equation Assets Liabilities Stockholders' Equity Date Cash Accounts Internet Accounts Supplies Salanes Land Unnamed Common Retained Recal Prepaid Rent Receivable Payable Payable Revenue Steck Earnings Bar Jan + Feb. 1 Mart . - Art 1 May 1 July 1 Beli Oct 1 Dec 31 Dec 31 Dec 31 |Dec. 31 Dec 31 Dec 31 Do 31 Dec 31 Ooo at Bal RA) Accounting Equation Req A Req B to M What two additional adjusting entries need to be made at the end of the year? (Select which of the following statements (is) are true by selecting an "X) Fob. 1. prepaid rent June 1. cash dividends to stockholders Aug cash payment accounts payable July 1, uneamed revenue: cash was recolved in advance Oct 1. purchases on account Dec. 31. accrued salaries expense Complete this question by entering your answers in the tabs below. Accounting Rega Req B to M Equation Refer to the Accounting Equation and transaction information to answer questions to M. (Do not round Intermediate calculations. Enter cash outflows as negative amounts.) b. Land c. Net cash flow from operating activities d. Rent expense e Total abilities Supplies expense 9. Uneamed revenue . Net cash flow from investing activities IL Total expenses 1. Service revenue k Cash flows from financing activities Net Income m. Retained earnings
