The following events apply to Lewis and Harper, a public accounting firm, for the Year 1 accounting period: 1. Performed $107,000 of services for clients on account. 2. Performed $58,000 of services for cash. 3. Incurred $64,000 of other operating expenses on account 4. Pald $24,000 cash to an employee for salary. 5. Collected $72,000 cash from accounts receivable. 6. Paid $38,000 cash on accounts payable. 7. Pald a $7,000 cash dividend to the stockholders. 8. Accrued salaries were $5,600 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? Reg. A Reg 8 to D Reg F to G 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 inve 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. (Not all cells will re decreases to account balances with a minus sign.) LEWIS AND HARPER Horizontal Statements Model For Accounting Year 1 Liabilities Stockholders Equity Income Statement Accounts Salarios Retained Revenue Payable Earnings Payable Net Income Expand 107,000 107.000 107.000 Event No. Statement of Cash Assets Accounts Receivable 107.000 Canh Flow + 1. 2 + + 3 + 4 5 . 6 . + 7 + B Totals 107,000 107.000 o. 0- 107,000 0 107.000 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? Complete this question by entering your answers in the tabs below. Req A Req B to D Req Fto G What is the amount of total assets, balance of accounts receivable, and accounts payable at the end of Year 1? b. c. Total assets Accounts receivable Accounts payable d Req A Reg B to D Reg F to G What is the net income and net cash flow from operating activities at the end of Year 1? Net income 9. Net cash flow from operating activities for Year 1
