Question
Waddell Company had the following balances in its accounting records as of December 31, Year 1: Assets Liabilities and Equity Cash $ 50,000 Accounts Payable
Waddell Company had the following balances in its accounting records as of December 31, Year 1:
Assets | Liabilities and Equity | ||||||
Cash | $ | 50,000 | Accounts Payable | $ | 30,000 | ||
Accounts Receivable | 53,000 | Common Stock | 87,000 | ||||
Land | 26,000 | Retained Earnings | 12,000 | ||||
Totals | $ | 129,000 | $ | 129,000 | |||
The following accounting events apply to Waddell Companys Year 2 fiscal year:
Jan. | 1 | Acquired $54,000 cash from the issue of common stock. | |
Feb. | 1 | Paid $5,400 cash in advance for a one-year lease for office space. | |
Mar. | 1 | Paid a $2,200 cash dividend to the stockholders. | |
April | 1 | Purchased additional land that cost $26,000 cash. | |
May | 1 | Made a cash payment on accounts payable of $18,000. | |
July | 1 | Received $8,800 cash in advance as a retainer for services to be performed monthly over the coming year. | |
Sept. | 1 | Sold land for $23,000 cash that had originally cost $23,000. | |
Oct. | 1 | Purchased $1,080 of supplies on account. | |
Dec. | 31 | Earned $70,000 of service revenue on account during the year. | |
31 | Received cash collections from accounts receivable amounting to $56,000. | ||
31 | Incurred other operating expenses on account during the year that amounted to $11,000. | ||
31 | Recognized accrued salaries expense of $4,700. | ||
31 | Had $170 of supplies on hand at the end of the period. | ||
31 | The land purchased on April 1 had a market value of $42,000. | ||
31 | Recognized $120 of accrued interest revenue. |
Required
Show the effects of the events on the financial statements using the following horizontal statements model. All questions pertain to the Year 2 financial statements.
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What two additional adjusting entries need to be made at the end of the year?
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What amount would Waddell report for land on the balance sheet?
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What amount of net cash flow from operating activities would be reported on the statement of cash flows?
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What amount of rent expense would be reported on the income statement?
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What amount of total liabilities would be reported on the balance sheet?
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What amount of supplies expense would be reported on the income statement?
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What amount of unearned revenue would be reported on the balance sheet?
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What amount of net cash flow from investing activities would be reported on the statement of cash flows?
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What amount of total expenses would be reported on the income statement?
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What total amount of service revenue would be reported on the income statement?
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What amount of cash flows from financing activities would be reported on the statement of cash flows?
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What amount of net income would be reported on the income statement?
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What amount of retained earnings would be reported on the balance sheet?
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