Waddell Company had the following balances in its accounting records as of December 31, Year 1 Assets Liabilities and equity Cash $ 35,000 Accounts payable $ 7,500 Accounts receivable 9,000 Common stock 40,000 Land 51,000 Retained earnings 47,500 Totals $ 95,000 $ 95,000 The following accounting events apply to Waddell Companys Year 2 fiscal year Jan 1 Acquired $20,000 cash from the issue of common stock Feb 1 Paid $6,000 cash in advance for a one year lease for office space Mar 1 Paid a $2,000 cash dividend to the stockholders April 1 Purchased additional land that cost $15,000 cash May 1 Made a cash payment on accounts payable of $5,500 July 1 Received $9,600 cash in advance as a retainer for services to be performed monthly over the coming year Sept 1 Sold land for $30,000 cash that had originally cost $30,000 Oct 1 Purchased $2,500 of supplies on account Dec 31 Earned $58,000 of service revenue on account during the year 31 Received cash collections from accounts receivable amounting to $46,000 31 Incurred other operating expenses on account during the year that amounted to $28,000 31 Recognized accrued salaries expense of $6,500 31 Had $50 of supplies on hand at the end of the period 31 The land purchased on April 1 had a market value of $20,000 31 Recognized $500 of accrued interest revenue Required Based on the preceding information, answer the following questions for Waddell Company All questions pertain to the Year 2 financial statements ( Hint Enter items in general ledger accounts under the accounting equation before answering the questions ) What two additional adjusting entries need to be made at the end of the year What amount would Waddell report for land on the balance sheet What amount of net cash flow from operating activities would be reported on the statement of cash flows What amount of rent expense would be reported on the income statement What amount of total liabilities would be reported on the balance sheet What amount of supplies expense would be reported on the income statement What amount of unearned revenue would be reported on the balance sheet What amount of net cash flow from investing activities would be reported on the statement of cash flows What amount of total expenses would be reported on the income statement What total amount of service revenue would be reported on the income statement What amount of cash flows from financing activities would be reported on the statement of cash flows What amount of net income would be reported on the income statement What amount of retained earnings would be reported on the balance sheet WADDELL COMPANY Accounting Equation Assets Date Accounts Receivable Cash Liabilities Salaries Payable Interest Receivable Prepaid Rent Stockholders' Equity Common Retained Stock Earnings Supplies Accounts Payable 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 Dec 31 Dec 31 Bal 0 0 0 0 0 0 0 0 0 0 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, Unearned revenue cash was received in advance Oct 1, Purchases on account Dec 31, Accrued salaries expense Accounting Equation Reg 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 e C Net cash flow from operating activities d Rent expense Total liabilities f Supplies expense g Unearned revenue h Net cash flow from investing activities i Total expenses j Service revenue k Cash flows from financing activities I Net income m Retained earnings

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 19, 2024

Waddell Company had the following balances in its accounting records as of December 31, Year 1: Assets Liabilities and equity Cash $ 35,000 Accounts payable

Waddell Company had the following balances in its accounting records as of December 31, Year 1:


Assets			Liabilities and equity
Cash	$	35,000	Accounts payable	$	7,500
Accounts receivable		9,000	Common stock		40,000
Land		51,000	Retained earnings		47,500
Totals	$	95,000		$	95,000

The following accounting events apply to Waddell Companys Year 2 fiscal year:

Jan.	1	Acquired $20,000 cash from the issue of common stock.
Feb.	1	Paid $6,000 cash in advance for a one-year lease for office space.
Mar.	1	Paid a $2,000 cash dividend to the stockholders.
April	1	Purchased additional land that cost $15,000 cash.
May	1	Made a cash payment on accounts payable of $5,500.
July	1	Received $9,600 cash in advance as a retainer for services to be performed monthly over the coming year.
Sept.	1	Sold land for $30,000 cash that had originally cost $30,000.
Oct.	1	Purchased $2,500 of supplies on account.
Dec.	31	Earned $58,000 of service revenue on account during the year.
	31	Received cash collections from accounts receivable amounting to $46,000.
	31	Incurred other operating expenses on account during the year that amounted to $28,000.
	31	Recognized accrued salaries expense of $6,500.
	31	Had $50 of supplies on hand at the end of the period.
	31	The land purchased on April 1 had a market value of $20,000.
	31	Recognized $500 of accrued interest revenue.

Required

Based on the preceding information, answer the following questions for Waddell Company. All questions pertain to the Year 2 financial statements. (Hint: Enter items in general ledger accounts under the accounting equation before answering the questions.)

What two additional adjusting entries need to be made at the end of the year?
What amount would Waddell report for land on the balance sheet?
What amount of net cash flow from operating activities would be reported on the statement of cash flows?
What amount of rent expense would be reported on the income statement?
What amount of total liabilities would be reported on the balance sheet?
What amount of supplies expense would be reported on the income statement?
What amount of unearned revenue would be reported on the balance sheet?
What amount of net cash flow from investing activities would be reported on the statement of cash flows?
What amount of total expenses would be reported on the income statement?
What total amount of service revenue would be reported on the income statement?
What amount of cash flows from financing activities would be reported on the statement of cash flows?
What amount of net income would be reported on the income statement?
What amount of retained earnings would be reported on the balance sheet?

WADDELL COMPANY Accounting Equation Assets + Date Accounts Receivable Cash Liabilities Salaries Payable Interest Receivable Prepaid Rent Stockholders' Equity Common Retained Stock Earnings Supplies Accounts Payable 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 + + Dec. 31 + + Dec. 31 + + Bal. 0 0 0 0 0 0 0 0 + 0 + 0 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, Unearned revenue; cash was received in advance Oct. 1, Purchases on account Dec. 31, Accrued salaries expense Accounting Equation Reg 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 e. C. Net cash flow from operating activities d. Rent expense Total liabilities f. Supplies expense g. Unearned revenue h. Net cash flow from investing activities i. Total expenses j. Service revenue k. Cash flows from financing activities I. Net income m. Retained earnings