[The following information applies to the questions displayed below.]

At the beginning of Year 2, Oak Consulting had the following normal balances in its accounts:

Account	Balance
Cash	$ 27,300
Accounts receivable	16,300
Accounts payable	13,700
Common stock	16,000
Retained earnings	13,900

The following events apply to Oak Consulting for Year 2:

Provided $67,600 of services on account.

Incurred $2,700 of operating expenses on account.

Collected $47,800 of accounts receivable.

Paid $36,700 cash for salaries expense.

Paid $14,760 cash as a partial payment on accounts payable.

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

c. Show the beginning balances and the transactions in a horizontal statements model.

Note: Enter any decreases to account balances and cash outflows with a minus sign. In the Statement of Cash Flows column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, and NC for net change in cash. Not all cells require input.

OAK CONSULTING

Effect of Transactions on the Financial Statements for Year 2

Number

Balance Sheet

Income Statement

Statement of Cash Flows

Assets

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Liabilities

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Stockholders' Equity

Cash

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Accounts Receivable

Accounts Payable

Common Stock

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Retained Earnings

Revenue

Expenses

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Net Income

Balance

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1

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2

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3

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4

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5

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6

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Balance

0

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0

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0

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0

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0

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0

0