Required information [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 $ 29,400 20,700 12,400 26,900 10,800 The following events apply to Oak Consulting for Year 2: 1. Provided $70,800 of services on account. 2. Incurred $3,400 of operating expenses on account. 3. Collected $46,800 of accounts receivable. 4. Paid $38,600 cash for salaries expense. 5. Paid $14,220 cash as a partial payment on accounts payable. 6. Paid a $9,200 cash dividend to the stockholders. Required Record these transactions in a general journal. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet A B D E F > Provided $70,800 of services on account. Note: Enter debits before credits. Event General Journal Debit Credit 1 Record entry Clear entry View general Journal b&d. Post the beginning balances and the transactions from Parts a and d to the appropriate accounts. Cash Accounts Receivable Beg. Bal Beg. Bal End. Bal End. Bal Accounts Payable Common Stock Beg. Bal Beg. Bal End. Bal End. Bal Retained Earnings Dividends Beg. Bal Beg. Bal End. Bal End. Bal Service Revenue Operating Expenses Beg. Bal Beg. Bal End. Bal End. Bal Salaries Expense Beg. Bal End. Bal C. Show the beginning balances and the transactions 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 require input.) OAK CONSULTING Effect of Transactions on the Financial Statements for Year 2 Balance Sheet Income Statement No Assets Accounts + Receivable Liabilities Accounts Payable Stockholders' Equity Common Retained Stock Earnings Statement of Cash Flows + Cash + Revenue Expenses Net Income Bal. + + 1 + + + + + + 2 + + 3 + + 4 + + 5 + + + + + + 6 + + Bal. + = + d-1. Record the closing entries in the general journal (and post them to the T-accounts in Part b). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the closure of service revenue. Note: Enter debits before credits. Event General Journal Debit Credit 1 Record entry Clear entry View general journal d-1. Record the closing entries in the general journal (and post them to the T-accounts in Part b). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the closure of expense accounts. Note: Enter debits before credits. Event General Journal Debit Credit 2 Record entry Clear entry View general journal d-1. Record the closing entries in the general journal (and post them to the T-accounts in Part b). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet
