Answered step by step
Verified Expert Solution
Question
1 Approved Answer
stuck on this question, any help is appreciated Hart, Attorney at Law, experienced the following transactions in Year 1, the first year of operations: 1.
stuck on this question, any help is appreciated
Hart, Attorney at Law, experienced the following transactions in Year 1, the first year of operations: 1. Accepted $19,400 on April 1, Year 1, as a retainer for services to be performed evenly over the next 12 months. 2. Performed legal services for cash of $69,500. 3. Purchased $1,350 of office supplies on account. 4. Paid $1,215 of the amount due on accounts payable. 5. Pald a cash dividend to the stockholders of $4,900. 6. Pald cash for operating expenses of $18,100. 7. Determined that at the end of the accounting period $105 of office supplies remained on hand. 8. On December 31, Year 1, recognized the revenue that had been earned for services performed in accordance with Transaction 1. Required Show the effects of the events on the financial statements using a horizontal statements model . The first event has been recorded as an example (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. Do not round intermediate calculations. Enter any decreases to account balances and cash outflows with a minus sign. Not all cells require input.) HART, ATTORNEY AT LAW Effect of Transactions on the Financial Statements for Year 1 Balance Sheet Income Statement Liabilities Stockholders Revenue Expense = Not Income Equity Accounts Unearned Retained Payable Revenue Earnings 19,400 Statement of Cash Flows Transaction Assets Cash Supplies 19,400 + 1 2 3 19,400 89,500 - 1,350 1.350 (1.215) - 4 5 6 7 (1,215) (4.900) (18.100) (105) 8 0 19.400 0 19.400 Totals 64 685 1.245 135 Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started