The following events apply to Lewis and Harper, a public accounting firm, for the Year 1 accounting period:

1. Performed $89,500 of services for clients on account.

2. Performed $51,000 of services for cash.

3. Incurred $50,000 of other operating expenses on account.

4. Paid $20,500 cash to an employee for salary.

5. Collected $65,000 cash from accounts receivable.

6. Paid $19,000 cash on accounts payable.

7. Paid a $8,000 cash dividend to the stockholders.

8. Accrued salaries were $4,200 at the end of Year 1.

Required

1. 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.

2. What is the amount of total assets at the end of Year 1?

3. What is the balance of accounts receivable at the end of Year 1?

4. What is the balance of accounts payable at the end of Year 1?

6. What is the net income for Year 1?

7. What is the amount of net cash flow from operating activities for Year 1?

LEWIS AND HARPER Assets Event No. Horizontal Statements Model For Accounting Year 1 Stockholders' Liabilities + Income Statement Equity Accounts Salaries Retained Revenue = Net Income Payable Payable Expense Earnings 89,500 89,500 89,500 Statement of Cash Flow Cash + + + Accounts Receivable 89,500 = 1 + + + + + + 2. 3. + + + - 4. + + = - Novlog o N O ++ 5. + + 6 = 7. + + + +++ ++ 8. + Totals 0 + 89,500 = + 0+ 89,500 89,500 0 = 89,500 0 Req A Reg B to D Req F to G What is the amount of total assets, balance of accounts receivable, and accounts payable at the end of Year 1? . Total assets . Accounts receivable . Accounts payable Req A Req B to D Req F to G What is the net income and net cash flow from operating activities at the end of Year 1? f. Net income g. Net cash flow from operating activities for Year 1