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Problem: Module 1 Textbook Problem 6 Learning Objectives: 16 Show how receivables affect financial statements 17 Show how payables affect financial statements In Year 1,

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Problem: Module 1 Textbook Problem 6 Learning Objectives: 16 Show how receivables affect financial statements 17 Show how payables affect financial statements In Year 1, Lee Inc. billed its customers $57,600 for services performed. The company collected $40.000 of the amount billed. Lee Incurred $39700 of other operating expenses on account. Lee paid $24,900 of the accounts payable. Les acquired $22,000 cash from the issue of common stock. The company invested $11.000 cash in the purchase of land. Required (Hint Identity the six events described in the paragraph and record them in general ledger accounts under an accounting equation before attempting to answer the questions. Use the preceding information to answer the following questions: a. What amount of revenue wil lee report on the Year income statement? b. What amount of cash flow from revenue will be reported on the statement of cash flows? c. What is the net income for the period? d. What is the net cash flow from operating activities for the period? What is the amount of net cash flow from investing activities? 9. What is the amount of net cash flow from financing activities? h. What amounts of total assets, liabilities, and equilty will be reported on the year-end balance sheet? Complete this question by entering your answers in the tabs below. Accounting Equation Reg A to D Req Fto H mus LEE INC Effect of Events on the General Ledger Accounts Assets Liabilities Cash Accounts Accounts Rocolvable Land Payable Event Stockholders' Equity Common Retained Stock Earnings 1. Sales on account 2 Collected accounts receivable 3. Incurred expense 4. Pald accounts payable 5. Issue of stock 6. Purchase land Totals den Req A to D > Amount B b. Revenue recognized Cash flow from revenue Not income Net cash flow from operating activities d. 1. 9 h. Net cash flow from investing activities Net cash flow from financing activities Total assets Total liabilities Total equity

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