The following events apply to Brown and Birgin, a public accounting firm, for the 2014 accounting period:
1.	Performed $64,500 of services for clients on account.
2.	Performed $41,000 of services for cash.
3.	Incurred $30,000 of other operating expenses on account.
4.	Paid $15,500 cash to an employee for salary.
5.	Collected $50,000 cash from accounts receivable.
6.	Paid $16,000 cash on accounts payable.
7.	Paid a $5,000 cash dividend to the stockholders.
8.	Accrued salaries were $2,200 at the end of 2014.

Required
a.	Show the effects of the events on the financial statements using a horizontal statements model like the following one. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, NC for net change in cash and NA to indicate the element is not affected by the event. The first event is recorded as an example. (Enter any decreases to account balances and cash outflows with a minus sign.)

b.	What is the amount of total assets at the end of 2014?

c.	What is the balance of accounts receivable at the end of 2014?

d.	What is the balance of accounts payable at the end of 2014?

f.	What is net income for 2014?

g.

What is the amount of net cash flow from operating activities for 2014?

2.

The following events pertain to James Cleaning Company:

1.	Acquired $16,000 cash from the issue of common stock.
2.	Provided services for $5,000 cash.
3.	Provided $14,000 of services on account.
4.	Collected $10,000 cash from the account receivable created in Event 3.
5.	Paid $1,600 cash to purchase supplies.
6.	Had $150 of supplies on hand at the end of the accounting period.
7.	Received $3,400 cash in advance for services to be performed in the future.
8.	Performed one-half of the services agreed to in Event 7.
9.	Paid $6,000 for salaries expense.
10.	Incurred $2,500 of other operating expenses on account.
11.	Paid $2,150 cash on the account payable created in Event 10.
12.	Paid a $2,500 cash dividend to the stockholders.

Required:

Show the effects of the events on the financial statements using a horizontal statements model like the following one. In the Cash Flows column, use the letters OA to designate operating activity, IA for investing activity, FA for financing activity, NC for net change in cash and NA to indicate accounts not affected by the event. The first event is recorded as an example. (Enter any decreases to account balances and cash outflows with a minus sign.)

The following information applies to the questions displayed below.]

The following selected accounts and account balances were taken from the records of Bates Company. Except as otherwise indicated, all balances are as of December 31, 2014, before the closing entries were recorded.

Cash received from common stock issued during 2013	$	3,900
Cash		8,200
Revenue		8,000
Salary expense		2,900
Cash flow from operating activities		2,800
Notes payable		1,800
Utility expense		700
Dividends		1,700
Cash flow from financing activities		2,600
Rent expense		1,300
Land		24,800
Retained earnings, January 1, 2014		14,400
Common stock, December 31, 2014		11,500

Required

a.	Prepare the income statement Bates would include in its 2014 annual report.

Problem 2-34 Part b

b.

Identify the accounts that should be closed to the Retained Earnings account. (Select all that apply.)

Problem 2-34 Part c

c-1.

Determine the Retained Earnings account balance at December 31, 2014.

The following accounts and balances were drawn from the records of Dawkins Company at December 31, 2014:

Cash	$	10,400		Accounts receivable	$	19,000
Land		37,000		Cash flow from operating act.		7,900
Insurance expense		1,200		Beginning retained earnings		11,390
Dividends		5,100		Beginning common stock		900
Prepaid insurance		2,700		Service revenue		77,000
Accounts payable		28,000		Cash flow from financing act.		5,100
Supplies		740		Ending common stock		4,600
Supplies expense		250		Cash flow from investing act.		(6,900	)
Rent expense		2,600		Other operating expenses		42,000

Required

Use the accounts and balances from Dawkins Company to construct an income statement.

Use the accounts and balances from Dawkins Company to construct statement of changes in stockholders equity.

Use the accounts and balances from Dawkins Company to construct balance sheet.

Use the accounts and balances from Dawkins Company to construct statement of cash flows (show only totals for each activity on the statement of cash flows). (Enter cash outflows as negative amounts.)

c-2.	Which of the following statement(s) is true? (Select all that apply.)