Waddell Company had the following balances in its accounting records as of December 31, 2018 Assets Liabilities and Equity Cash $ 52,000 42,000 26,000 $120,000 $ 27,000 78,000 Retained Earnings15,000 $120,000 Accounts Payable Common Stock Accounts Receivable Land Totals The following accounting events apply to Waddell Company's 2019 fiscal year: Jan Acquired $48,000 cash from the issue of common stock. Feb1 Paid $5,400 cash in advance for a one-year lease for office space Mar Paid a $1,600 cash dividend to the stockholders April Purchased additional land that cost $26,000 cash May July Received $7,800 cash in advance as a retainer for services to 1 Made a cash payment on accounts payable of $15,000. be performed monthly over the coming year Sept. 1 Sold land for $21,000 cash that had originally cost $21,000 oct. Purchased $960 of supplies on account. Dec. 31 Earned $60,000 of service revenue on account during the year 31 Received cash collections from accounts receivable amounting to $62,000. 31 Incurred other operating expenses on account during the year that amounted to $14,000. 31 Recognized accrued salaries expense of $4,500 31 Had $200 of supplies on hand at the end of the period 31 The land purchased on April 1 had a market value of $38,000 31 Recognized $128 of accrued interest revenue. Required Based on the preceding information, answer the following questions for Waddell Company. All questions pertain to the 2018 financial statements. (Hint: Enter items in general ledger accounts under the accounting equation before answering the questions.) a. What two additional adjusting entries need to be made at the end of the year? b. What amount would Waddell report for land on the balance sheet? c. What amount of net cash flow from operating activities would be reported on the statement of cash flows? (Enter cash outflows as negative amounts.) d. What amount of rent expense would be reported on the income statement? (Do not round intermediate calculations.) e. What amount of total liabilities would be reported on the balance sheet? f. What amount of supplies expense would be reported on the income statement? g. What amount of unearned revenue would be reported on the balance sheet? (Do not round intermediate calculations.) h. What amount of net cash flow from investing activities would be reported on the statement of cash flows? (Enter cash outflows as negative amounts.) i. What amount of total expenses would be reported on the income statement? (Do not round intermediate calculations.) j. What total amount of service revenue would be reported on the income statement? (Do not round intermediate calculations.) k. What amount of cash flows from financing activities would be reported on the statement of cash flows? (Enter cash outflows as negative amounts.) I. What amount of net income would be reported on the income statement? (Do not round intermediate calculations.) m. What amount of retained earnings would be reported on the balance sheet? (Do not round intermediate calculations.)
