The following events apply to Lewis and Harper, a public accounting firm, for the Year 1 accounting period. 1. Performed $70,000 of services for clients on account 2. Performed $40,000 of services for cash 3. Incurred $36,000 of other operating expenses on account 4. Paid $10,000 cash to an employee for salary 5 Collected $47000 cash from accounts receivable. 6. Paid $16,000 cash on accounts payable. 7. Paid a $8,000 cash dividend to the stockholders. 8. Accrued salaries were $2,000 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 17 What is the balance of accounts receivable at the end of Year 12 d. What is the balance of accounts payable at the end of Year 1? 1. What is net income for Year 1? 9. 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. Reg A Req BtoD Reg to Show the effects on the financial statements using the following horizontal statements model in the cash flow column we OA to desiate nerath Reg A Reg to Reg to G Show the effects on the financial statements using the following horizontal statements model. In the cash flow column, use OA to designate 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 a decreases to account balances with a minus sign.) Assets Event No LEWIS AND HARPER Horizontal Statements Model For Accounting Year 1 Liabilities Stockholders Equity Income Statement Accounts Salaries Retained Payable Revenue Payable Earnings Expense Net Income 70,000 70,000 70,000 Cash Accounts Recevable 70,000 Statement of Cash Flows 1 2 3. 4. 5 6 7 8 Total 70.000 70,000 70,000 70.000 Regte > 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 recevable 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 12 Complete this question by entering your answers in the tabs below. Reg 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 17 Total assets Accounts receivable d. Accounts payable Complete this question by entering your answers in the tabs below. Reg A Reg 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 9. Net cash flow from operating activities for Year 1
