Waddell Company had the following balances in its accounting records as of December 31, 2015 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 Total $ 95,000 Total $ 95,000 The following accounting events apply to Waddell Companys 2016 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 2016 financial statements ( Hint Enter items in general ledger accounts under the accounting equation before answering the questions ) (Do not round intermediate calculations Enter any decreases to account balances with a minus sign ) Accounting Equation Date Assets Liabilities Stockholders Equity Cash Accounts Receivable Prepaid Rent Supplies Interest Receivable Land Accounts Payable Salaries Payable Unearned Revenue Common Stock Retained Earnings 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 a What two additional adjusting entries need to be made at the end of the year (Select all that apply ) 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 b What amount would Waddell report for land on the balance sheet Land 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 ) Net cash flow from operating activities d What amount of rent expense would be reported on the income statement (Do not round intermediate calculations ) rent expense e What amount of total liabilities would be reported on the balance sheet Total liabilities f What amount of supplies expense would be reported on the income statement supplies expenses g What amount of unearned revenue would be reported on the balance sheet (Do not round intermediate calculations ) unearned revenue 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 ) net cash flows form financing activities i What amount of total expenses would be reported on the income statement (Do not round intermediate calculations ) total expenses j What total amount of service revenue would be reported on the income statement (Do not round intermediate calculations ) services revenue k What amount of cash flows from financing activities would be reported on the statement of cash flows (Enter cash outflows as negative amounts ) cash flows from financing activities l What amount of net income would be reported on the income statement (Do not round intermediate calculations ) net income m What amount of retained earnings would be reported on the balance sheet (Do not round intermediate calculations ) retained earnings

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Posted on Jul 28, 2024

Waddell Company had the following balances in its accounting records as of December 31, 2015: Assets Liabilities and Equity Cash $ 35,000 Accounts Payable $

Waddell Company had the following balances in its accounting records as of December 31, 2015:


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

Total	$	95,000	Total	$	95,000

The following accounting events apply to Waddell Companys 2016 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 2016 financial statements. (Hint: Enter items in general ledger accounts under the accounting equation before answering the questions.) (Do not round intermediate calculations. Enter any decreases to account balances with a minus sign.)

Accounting Equation

Date

Assets

Liabilities

Stockholders Equity

Cash

Accounts Receivable

Prepaid Rent

Supplies

Interest Receivable

Land

Accounts Payable

Salaries Payable

Unearned Revenue

Common Stock

Retained Earnings

Bal.

Jan. 1

Feb. 1

Mar. 1

April 1

May 1

July 1

Sept.1

Oct. 1

Dec. 31

Bal.

What two additional adjusting entries need to be made at the end of the year? (Select all that apply.)

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

b.	What amount would Waddell report for land on the balance sheet?

Land=

What amount of net cash flow from operating activities would be reported on the statement of cash flows? (Enter cash outflows as negative amounts.)

Net cash flow from operating activities

d.	What amount of rent expense would be reported on the income statement? (Do not round intermediate calculations.)

rent expense=

e.	What amount of total liabilities would be reported on the balance sheet?

Total liabilities=

f.	What amount of supplies expense would be reported on the income statement?

supplies expenses=

g.	What amount of unearned revenue would be reported on the balance sheet? (Do not round intermediate calculations.)

unearned revenue=

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.)

net cash flows form financing activities=

i.	What amount of total expenses would be reported on the income statement? (Do not round intermediate calculations.)

total expenses=

j.	What total amount of service revenue would be reported on the income statement? (Do not round intermediate calculations.)

services revenue=

k.	What amount of cash flows from financing activities would be reported on the statement of cash flows? (Enter cash outflows as negative amounts.)

cash flows from financing activities=