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Waddell Company had the following balances in its accounting records as of December 31, Year 1: Asseto Cash Account Receivable Land Totale $ 54,000 46,000

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Waddell Company had the following balances in its accounting records as of December 31, Year 1: Asseto Cash Account Receivable Land Totale $ 54,000 46,000 35,000 $135,000 Liabilities and Equity Accounts Payable Common Stock Retained Earnings $ 21,000 101,000 13,000 $135,000 The following accounting events apply to Waddell Company's Year 2 fiscal year MAY Jan. 1 Aequired 346,000 cash from the Insue of common stock. reb. 1 Paid 35,100 cash in advance for a one-year lease for office space. Mr. 1 Paid a $2,500 cash dividend to the stockholders April purchased additional land that cost $35,000 cash. 1 Made a cash payment on accounts payable of $10,000. July 1 Received $7,000 cash in advance as a retainer for services to be performed monthly over the coming year. Sept.1 Sold land for 519,000 cash that had originally cost $19,000. Oct 1 Purchased $1,060 of supplies on account. Dec. 31 Earned 956,000 of service revenue on account during the year. 31 Received cash collections from accounts receivable amounting to $60,000. 31 Incurred other operating expenses on account during the year that anounted to $10,000. 31 Recognised acorued salaries expense of 54,900. 01 Kad $150 of supplies on hand at the end of the period. 31 The land purchased on April 1 had a market value of 544,000. 31 Recognised $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, 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? d. What amount of rent expense would be reported on the income statement? 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? 9. What amount of unearned revenue would be reported on the balance sheet? h. What amount of net cash flow from Investing activities would be reported on the statement of cash flows? 1. What amount of total expenses would be reported on the income statement? J. What total amount of service revenue would be reported on the income statement? k. What amount of cash flows from financing activities would be reported on the statement of cash flows? L. What amount of net income would be reported on the income statement? m. What amount of retained earnings would be reported on the balance sheet? Complete this question by entering your answers in the tabu below. Accounting Equation RAGA RestoM 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. (Do not round interme decreases to account balances with a minus sign. Not all cells require input.) WADOELL COMPANY Accounting Equation Asus Elabilities Stockholders' Equity Accounts interest Account Starles Uneamed Common Cash Retained Supplies Land Receivable Payable Payable Raven Stock Earrings Receivable Prepaid Rent . + Jon Feb. 1 Mar. 1 Art May 1 1 Sett Oct 1 Decat Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 B Req A > Complete this question by entering your answers in the tabs below. Accounting Equation Req A Reg B to M What two additional adjusting entries need to be made at the end of the year? (Select which of the following statements (is) are true by selecting an "X") Feb, 1. prepaid rent June 1. cash dividends to stockholders Aug 1, cash payment accounts payable July 1, uneamed revenue; cash was received in advance Oct. 1, purchases on account Dec. 31, accrued salaries expense Complete this question by entering your answers in the tabs below. Accounting Equation Req A Reg B to M Refer to the Accounting Equation and transaction Information to answer questions B to M. (Do not round intermediate calculations. Enter cash outflows as negative amounts.) b. Land c. Net cash flow from operating activities d. Rent expense 6. Total liabilities Supplies expense a Uneamed revenue n. Net cash flow from investing activities Total expenses Service revenue kCash flows from financing activities Net Income m. Retained earnings

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