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Exercise 3-22A Recording events in the general journal, posting to T-accounts, and preparing closing entries LO 3-1, 3-2, 3-3, 3-4

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[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	Balance
Cash	$	26,400
Accounts receivable		17,000
Accounts payable		11,500
Common stock		19,400
Retained earnings		12,500

The following events apply to Oak Consulting for Year 2:

1. Provided $67,400 of services on account.
2. Incurred $2,900 of operating expenses on account.
3. Collected $47,200 of accounts receivable.
4. Paid $40,000 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 beginning balances and the events in a horizontal statements model such as the following one: (In the Cash Flow column, use the initials "OA" for operating activities, "FA" for financing activities and "NC" for net change in cash. Select "NA" wherever required. Enter any decreases to account balance and cash outflows with a minus sign.) OAK CONSULTING Effect of Transactions on the Financial Statements for Year 2 Balance Sheet Income Statement Expenses = Net Income Assets Liabilities + Revenue Statement of Cash Flow No Stockholders' Equity Common Retained Stock Earnings Cash Accounts Receivable + Accounts Payable + + Bal. + = = + + 1 + = + + 2 + = + + 3 = + + + 4 + + + 5 + + + 6 + + + 0+ 0 + 0 0 + 0 = 0 0 Bal. = 0 0 d-1. Record the closing entries in the general Journal. (If no entry is required for a transaction/event, select "No journal ents required" in the first account field.) View transaction list Journal entry worksheet Record the closure of service revenue. Note: Enter debts before creats. Event General Journal Debit Credit 1 Record entry Clear entry View general journal S 28 View transaction list Journal entry worksheet A B C Record the closure of expenses account. Note: Enter debits before credits. Event General Journal Debit Credit 2 Record entry Clear entry View general journal View transaction list Journal entry worksheet