The following events apply to Lewis and Harper, a public accounting firm, for the Year 1 accounting period: 1. Performed $99,500 of services for clients on account 2. Performed $55,000 of services for cash. 3. Incurred $58,000 of other operating expenses on account. 4. Paid $22,500 cash to an employee for salary. 5. Collected $69.000 cash from accounts receivable. 6. Paid $18,000 cash on accounts payable. 7. Paid a $7,000 cash dividend to the stockholders. 8. Accrued salaries were $5,000 at the end of Year 1. Required a. Show the effects on the financial statements using the following horizontal statements model. In the cash flow column, use OA to designate operating activity, IA for investing activity, FA for financing activity, or NC for net change. If the element is not affected by the event, leave the cell blank. The first transaction is shown as an example. b. What is the amount of total assets at the end of Year 1? c. What is the balance of accounts receivable at the end of Year 1? d. What is the balance of accounts payable at the end of Year 1? f. What is the net income for Year 1? g. What is the amount of net cash flow from operating activities for Year 1? Assets Event No. Statement of Cash Flow Cash LEWIS AND HARPER Horizontal Statements Model For Accounting Year 1 Stockholders' Liabilities Income Statement Equity Accounts Salaries Retained Revenue Net Income Payable Payable Expense Earnings 99,500 99,500 - 99,500 55,000 55,000 55,000 58,000 (58,000) 58,000 (58,000) (22,500) 22,500 (22,500) Accounts Receivable 99,500 - + 55,000 55,000 1. 2 3. 4. 5. (69,000) (22,500) 69,000+ (18,000) (7.000) (22,500) 69,000 (18,000) (7.000) (18,000) 6. 7 OA FA 8 5,000+ 5,000 + (7.000) (5,000) 62,000 000 85,500 = (5,000) 69,000 Totals 76,500+ 30,500 - 40,000+ 76,500 154,500 Reg to D >