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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

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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 $47,000 cash from accounts receivable. 6. Paid $16,000 cash on accounts payable 7. Pald 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 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? Show the effects on the financial statements using the following horizontal statements model. In the cash flow column, use OA to designate opera 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 exam decreases to account balances with a minus sign.) Assets LEWIS AND HARPER Horizontal Statements Model For Accounting Year 1 Stockholders Liabilities Equity Income Statement Accounts Salaries Retained Payable Revenue Earnings Payable Expense - Net Income 70.000 70,000 70,000 Event No. Cash Statement of Cash Flows Accounts Receivable 70,000 - 1 2. + . + 3 4 5. 6 7. +++ 8 Totals 0 + 70,000 0+ 01 + 70,000 70,016 0 = 70,000

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