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5A-1. The comparative balance sheet for TYPICAL Incorporated is shown below for January 1, 20x1, and December 31, 20x1. The income statement for 20x1 is also shown. TYPICAL makes all sales and purchases on account. Any equipment purchases made during the year were in cash. TYPICAL INCORPORATED Comparative Balance Sheet January 1 and December 31, 20x1 January 1 December 31 Assets $ 3,000 7,000 5,000 3,000 1,000 7,000 0 $16,000 Cash Accounts receivable 6,000 17,000 (3.000) $30,000 Supplies Plant & equipment Accumulated depreciation com o Total Assets Liabilities &Owners' Equity Accounts payable Wages payable $ 0 2.000 $ 2,000 1,000 0 Total Liabilities $ 1,000 Common stock Retained earnings Total Liabilities & Owners' Equity 10,000 16,000 5.000 $16.000 12.000 $30.000 TYPICAL INCORPORATED Income Statement bYear Ending December 31, 20x1 Revenue $34,000 Expenses: Supplies expense Wage expense Depreciation expense (15,000) (9,000) (3.000) 7,000 Net Income Required: 1. Open one ledger account for each balance sheet account and one for each income statement account. (Note: in a statement of cash flows problem you sometimes have to add a few additional T-accounts-the template provided has enough accounts necessary to work this particular problem.) Enter the 20x1 beginning and ending balances for each permanent account. 2. Use the income statement, balance sheet, and supplemental information to explain what happened to each account during the year some intelligent guessing might be required at this point. 3. Classify each cash transaction as operating (0), investing (I), or financing (F), and write out the use or source of the cash involved. 4. Prepare the 20x1 statement of cash flows for TYPICAL Incorporated. Template for Problem 5A-1; Requirement 4 (Requirements 1, 2 and 3 are on next page) Name: Lab Section Time: TA Name: Statement of Cash Flows Template for Problem 5A-1; Requirement 1, 2 and 3 Cash Income Summary See next page for better version of this T-acct Template for Problem 5A-1; Requirement 1, 2 and 3-Cash T Account provided witha list of sources and uses of cash flow On this version you are so that you can place the numbers you come up with on the appropriate line. Place the classification you decide on for each value and put inside the brackets [ 1. This is likely the format that would be used on an exam. Cash From equipment [ ] For equipment [ 1 From customers [ ] For interest [ ] From stock [ For utilities [ ] From dividends[ ] For supplies[] From lenders For employees [ 1 For dividends[