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Waddell Company had the following balances on its accounting records as of December 31, Year 1: Assets Liabilities & Equity Cash $35,000 A/P $7.500 A/R

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Waddell Company had the following balances on its accounting records as of December 31, Year 1: Assets Liabilities & Equity Cash $35,000 A/P $7.500 A/R 9,000 Common Stock 40,000 Land 51.000 Retained Earnings 47.500 Total $95.000 $95.000 The following accounting events apply to Waddell Company's 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. May 1 Made a cash payment on accounts payable of $5,500. Jul 1 Received $9.600 cash in advance as a retainer for services to be performed monthly over the coming twelve months. Sep 1 Borrowed $30,000 from the bank at an annual interest rate of 3%. The note will be repaid in three years. Interest is paid annually on August 31. Oct 1 Purchased $2.500 of supplies on account, Dec 31a Earned $58.000 of service revenue on account during the year. Dec 315 Received cash collections from customers amounting to $46,000. Dec 316 Incurred other operating expenses on account during the year that amounted to $28,000. Dec 31d Recognized accrued salaries expense of $6,500. Dec 31e Had $500 of supplies on hand at the end of the period. Dec 31f Recognized interest expense incurred during Year 2. How much interest expense did Waddell recognize in Year 2? Do not include dollar signs or commas in your answers. 930 D Question 2 1 pts What is the value of Total Assets at the end of Year 2? D Question 3 1 pts What Net Income amount will Waddell report on its Year 2 Income Statement? Question 4 1 pts What is the ending balance of the Retained Earnings account after closing Year 2? Question 5 1 pts How many liability accounts appear on the Year 2 Balance Sheet? Question 6 1 pts What is the net cash flow from operating activities for Year 2

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