Problem 2-35 Effect of events on financial statements LO 2-1, 2-2, 2-3, 2-4, 2-5, 2-6 Davis Company had the following balances in its accounting records as of December 31, 2013: Assets Liabilities and Equity Cash $ 46,000 Accounts Payable $ 22,000 Accounts Receivable 50,000 Common Stock 85,000 Land 30,000 Retained Earnings 19,000 Totals $ 126,000 $ 126,000 The following accounting events apply to Davis for 2014: Jan. 1 Acquired an additional $46,000 cash from the issue of common stock. April 1 Paid $5,700 cash in advance for a one-year lease for office space. June 1 Paid a $2,300 cash dividend to the stockholders. July 1 Purchased additional land that cost $30,000 cash. Aug. 1 Made a cash payment on accounts payable of $11,000. Sept. 1 Received $8,200 cash in advance as a retainer for services to be performed monthly during the next eight months. Sept. 30 Sold land for $19,000 cash that had originally cost $19,000. Oct. 1 Purchased $1,100 of supplies on account. a. Earned $68,000 of service revenue on account during the year. b. Received $57,000 cash collections from accounts receivable. c. Incurred $14,000 other operating expenses on account during the year. d. Recognized accrued salaries expense of $5,500. e. Had $130 of supplies on hand at the end of the period. f. The land purchased on July 1 had a market value of $30,000. g. Recognized $115 of accrued interest revenue. h. Recognized the earning of cash received in advance for the lease for office space. i. Recognized the cash received in advance for services to be performed monthly. Required Based on the preceding information for Davis Company answer the following questions. All questions pertain to the 2014 financial statements. (Hint: Record the events in general ledger accounts under an accounting equation before answering the questions.) (Do not round intermediate calculations. Enter any decreases to account balances with a minus sign.)