The following events apply to Lewis and Harper, a public accounting firm, for the Year 1 accounting period: 1. Performed $69,500 of services for clients on account. 2. Performed $43,000 of services for cash. 3. Incurred $34,000 of other operating expenses on account. 4. Paid $16,500 cash to an employee for salary. 5. Collected $50,000 cash from accounts receivable. 6. Paid $18,000 cash on accounts payable. 7. Paid a $5,000 cash dividend to the stockholders. 8. Accrued salaries were $2.600 at the end of Year 1 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 shown as an exampl balances and cash outflows with a minus sign.) e. (Enter any decreases to account 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 net income for Year 1? g. What is the amount of net cash flow from operating activities for Year 1? mplete this question by entering your answers in the tabs below. Req A Req B to F Req G 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 investment activity, FA for financing activity, NC for net change in cash and NA decreases to account balances and cash outflows with a minus sign.) to indicate the element is not a ffected by the event. The first event is LEWIS AND HARPER Statements Mode For Accounting Year 1 Stockholders Assets Liabilities Equity Income Statement Statement of Cash Flow No. AccountsAccounts Re Salaries Revenue |-| Expense |= Net Income Cash 69,500 9,5006 9,500- 69,500 NA 2. 3. 5. 6. Totals 69.500 69.500 69,500 69,500 omework Complete this question by entering your answers in th Req A Req B to F Req G What is the amount of total assets at the end of Year 1? What is the balance of accounts receivable at the end of Year 1 What is the balance of accounts payable at the end of Year 1? What is net income for Year 1? b. Total assets c. Accounts receivable d. Accounts payable f. Net income Req A Flow column, use OA to designate operating activity, IA for investn NA to indicate the element is not affected by the event. The first e balances and cash outflows with a minus sign.) 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 net income for Year 1? g. What is the amount of net cash flow from operating activities forY Complete this question by entering your answers in the tabs be Req A What is the amount of net cash flow from operating activities for Year 1? Net cash flow from operating activities for Year 1 Req B to F Req G Req B to F Reg K Prev 5 of 1
