Problem 2-40A (Algo) Effect of events on financial statements LO 2-3, 2-8 Waddell Company had the following balances in its accounting records as of December 31, Year 1 Assets Liabilities and Equity Cash $ 53,669 Accounts Payable $ 27,696 Accounts Receivable 52,669 Common Stock 91,696 Land 33,669 Retained Earnings 29,696 Total $ 138,669 Total $ 138,696 The following accounting events apply to Waddell Company's Year 2 fiscal year: January 1 Acquired $42,666 cash From the issue of common stock. February 1 Paid $5,166 cash in advance for a one-year lease for office space. March 1 Paid a $2,766 cash dividend to the stockholders April 1 Purchased additional land that cost $33,666 cash May 1 Made a cash payment on accounts payable of $18,666. July 1 Received $8,666 cash in advance as a retainer for services to be performed monthly over the coming year September 1 Sold land for $23,666 cash that had originally cost $23,666. October 1 Purchased $1,626 of supplies on account. December 31 December 31 December 31 December 31 December 31 December 31 Earned $66,666 of service revenue on account during the yeah Received cash collections from accounts receivable amounting to $53,669. Incurred other operating expenses on account during the year that amounted to $12,669. Recognized accrued salaries expense of $4,669. Had $156 of supplies on hand at the end of the period. The land purchased on April 1 had a market value of $45,669. Required Based on the preceding information. answer the following questions for Waddell Company. All questions pertain to the Year 2 financial statements, (Hint Enter items in general ledger accounts under the accounting equation before answering the questions) a. What amount would Waddell report for land on the balance sheet? b. What amount of net cash flow from operating activities would be reported on the statement of cash flows? c. What amount of rent expense would be reported on the income statement? d. What amount of total liabilities would be reported on the balance sheet? 3. What amount ofsupplies expense would be reported on the income statement? f. What amount of unearned revenue would be reported on the balance sheet? 9. What amount of net cash flow from investing activities would be reported on the statement of cash flows? h. What amount oftotal expenses would be reported on the income statement? i. What amount of serVice revenue would be reported on the income statement? j. What amount of cash flows from finanCing activities would be reported on the statement of cash flows? k. What amount of net income would be reported on the income statement? I. What amount of retained earnings would be reported on the balance sheet? Accounting Equation Req A to L Based on the preceding information, answer the following questions for Waddell Company. All questions pertain to the Year 2 nancial statemenis. (Hint: Enter items in general ledger accounts under the accounting equation before answering the questions.) {Do not round intermediate calculations. Enter any decreases to account ha lances with a minus sign. Not all cells require entry.) H IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII Bal 0 0 0 0 0 Accounting Equation Req A to L What amount would Waddell report for land on the balance sheet? What amount of net cash flow from operating activities would be reported on the statement of cash flows? (Enter cash outflows as negative amounts.) What amount of rent expense would be reported on the income statement? (Do not round intermediate calculations.) What amount of total liabilities would be reported on the balance sheet? What amount of supplies expense would be reported on the income statement? What amount of unearned revenue would be reported on the balance sheet? (Do not round intermediate calculations.) What amount of net cash flow from investing activities would be reported on the statement of cash ows? (Enter cash outflows as negative amounts.) What amount of total expenses would be reported on the income statement? (Do not round intermediate calculations.) What amount of service revenue would be reported on the income statement? (Do not round intermediate calculations.) What amount of cash ows from financing activities would be reported on the statement of cash flows? (Enter cash outflows as negative amounts.) What amount of net income would be reported on the income statement? (Do not round intermediate calculations.) What amount of retained earnings would be reported on the balance sheet? (Do not round intermediate calculations.) Show IessA Land Net cash ow from operating activities Rent expense Total liabilities Supplies expense Un earned revenue Net cash ow from investing activities aeoeeoee Total expenses Service revenue j. Cash flows from nancing activities k. Net income l. Retained earnings