Waddell Company had the following balances in its accounting records as of December 31, Year 1: Assets Cash Accounts Receivable Land $ 52,000 52,000 26,000 $ 130,000 Liabilities and Equity Accounts Payable Common Stock Retained Earnings $ 28,000 82,000 20,000 $130,000 Total Total The following accounting events apply to Waddell Company's Year 2 fiscal year: Jan. Feb. Mar. Apr. May July 1 Acquired $50,000 cash from the issue of common stock. 1 Paid $5,400 cash in advance for a one-year lease for office space. 1 Paid a $1,700 cash dividend to the stockholders. 1 Purchased additional land that cost $26,000 cash. 1 Made a cash payment on accounts payable of $21,000. 1 Received $8,200 cash in advance as a retainer for services to be performed monthly over the coming year. $19,000 cash that had originally cost $19,000. 1 Purchased $920 of supplies on account. 31 Earned $63,000 of service revenue on account during the year. 31 Received cash collections from accounts receivable amounting to $63,000. 31 Incurred other operating expenses on account during the year that amounted to $13,000. 31 Recognized accrued salaries expense of $4,700. 31 Had $190 of supplies on hand at the end of the period. 31 The land purchased on April i had a market value of $32,000. Oct. Dec. Accounting Equation Assets Date Accounts Receivable Cash Prepaid Rent Supplies Liabilities Salaries Payable Accounts Payable Stockholders' Equity Common Retained Stock Earnings Land Unearned Revenue Bal. + + Jan. 1 + + Feb. 1 + + + + Mar. 1 April 1 + + May 1 + + + + + + July 1 Sept. 1 Oct. 1 Dec. 31 + + + + Dec. 31 + + Dec. 31 + + Dec. 31 + + Dec. 31 + + Dec. 31 + + Dec. 31 + + a. Land b. Net cash flow from operating activities C. Rent expense d. Total liabilities e. Supplies expense f. Unearned revenue Net cash flow from investing activities Total expenses i. Service revenue Cash flows from financing activities k. Net income Retained earnings