! Required information Exercise 13-22A Recording events in the general journal, posting to T-accounts, and preparing closing entries LO 13-1, 13-2, 13-3, 13-4 [The following information applies to the questions displayed below.] At the beginning of Year 2, Oak Consulting had the following normal balances in its accounts: Account Cash Accounts receivable Accounts payable Common stock Retained earnings Balance $ 27,600 19,500 11,400 25,000 10,700 The following events apply to Oak Consulting for Year 2: 1. Provided $71,400 of services on account. 2. Incurred $3,000 of operating expenses on account. 3. Collected $47,300 of accounts receivable. 4. Paid $38,000 cash for salaries expense. 5. Paid $12,960 cash as a partial payment on accounts payable. 6. Paid a $9,700 cash dividend to the stockholders. c. Show the effect of above adjustment in a horizontal statements model. (Enter any decreases to account balances and cash outflows with a minus sign. In the Statement of Cash Flows column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, and NC for net change in cash. Not all cells in the "Statement of Cash Flows" column may require an input - leave cells blank if there is no corresponding input needed.) OAK CONSULTING Effect of Transactions on the Financial Statements for Year 2 Balance Sheet Income Statement Liabilities Stockholders' Equity Revenue - Expenses = Net Income Accounts Common Retained Payable Stock Earnings Statement of Cash Assets Accounts Receivable Flows No Cash + + Bal. + + + 1 + + + 2 + + + 3 + + + 4 + + + - - 5 + + + 6 + + + Bal. 0 + 0 = 0 + 0 + 0 0 0 = 0 0