Hart, Attorney at Law, experlenced the following transactions In Year 1, the first year of operations: 1 Accepted $36.000 on April 1, Year 1, as a retalner for services to be performed evenly over the next 12 months. 2 Performed legal services for cash of $54,000. 3. Purchased $2,800 of office supples on account 4. Pald $2.400 of the amount due on accounts payable. 5. Pald a cash dividend to the stockholders of $5,000. 6. Pald cash for operating expenses of $31000. 7. Determined that at the end of the accounting perlod $200 of office supplies remalned on hand. B. On December 31, Year 1, recognized the revenue that had been earned for servlces performed In accordance with Transaction 1. Required Show the effects of the events on the financlal statements using the following hortzontal statements model. In the Cash Flows column, use OA to designate operating activity, FA for financing activity, IA for Investing activity, or NC for net change In cash. If the element Is not affected by the event, leave the cell blank. The first event has been recorded as an example. (Do not round Intermedlate calculations. Enter any decreases to account balances and cash outflows with a minus sign. Not all cells will require entry.) HART, ATTORNEY AT LAW Effect of Transactions on the Financial Statements for Year 1 Balance Sheet Income Statement Stockholders Equity Statement of Cash Flow Assets Liabilities Retained Earnings Unearned Event No. Net Income + Supplies Accounts Revenue - Expense Cash %3D Payable Revenue 36,000|+ 36,000 + 36,000 OA %3D 1. %3D 2. %3D 3. %3D + 4. !! 5. + 8. %3D 7. %3D 8. %3D Totals
Hart, Attorney at Law, experlenced the following transactions In Year 1, the first year of operations: 1 Accepted $36.000 on April 1, Year 1, as a retalner for services to be performed evenly over the next 12 months. 2 Performed legal services for cash of $54,000. 3. Purchased $2,800 of office supples on account 4. Pald $2.400 of the amount due on accounts payable. 5. Pald a cash dividend to the stockholders of $5,000. 6. Pald cash for operating expenses of $31000. 7. Determined that at the end of the accounting perlod $200 of office supplies remalned on hand. B. On December 31, Year 1, recognized the revenue that had been earned for servlces performed In accordance with Transaction 1. Required Show the effects of the events on the financlal statements using the following hortzontal statements model. In the Cash Flows column, use OA to designate operating activity, FA for financing activity, IA for Investing activity, or NC for net change In cash. If the element Is not affected by the event, leave the cell blank. The first event has been recorded as an example. (Do not round Intermedlate calculations. Enter any decreases to account balances and cash outflows with a minus sign. Not all cells will require entry.) HART, ATTORNEY AT LAW Effect of Transactions on the Financial Statements for Year 1 Balance Sheet Income Statement Stockholders Equity Statement of Cash Flow Assets Liabilities Retained Earnings Unearned Event No. Net Income + Supplies Accounts Revenue - Expense Cash %3D Payable Revenue 36,000|+ 36,000 + 36,000 OA %3D 1. %3D 2. %3D 3. %3D + 4. !! 5. + 8. %3D 7. %3D 8. %3D Totals
Chapter3: Income Sources
Section: Chapter Questions
Problem 79P
Related questions
Question
Could you please help me solving this question? Please
Transcribed Image Text:Hart, Attorney at Law, experlenced the following transactions In Year 1, the first year of operations:
1. Accepted $36.000 on April 1, Year 1, as a retainer for services to be performed evenly over the next 12 months.
2 Performed legal services for cash of $54,000.
3. Purchased $2,800 of office supplies on account
4. Pald $2.400 of the amount due on accounts payable.
5. Pald a cash dividend to the stockholders of $5,000.
6. Pald cash for operating expenses of $31,000.
7. Determined that at the end of the accounting perlod $200 of office supplies remalned on hand.
8. On December 31, Year 1, recognized the revenue that had been earned for servlces performed In accordance with Transaction 1.
Required
Show the effects of the events on the financlal statements using the following hortzontal statements model. In the Cash Flows column,
use OA to designate operatlng activity, FA for financing activity, IA for Investing activity, or NC for net change In cash. If the element Is
not affected by the event, leave the cell blank. The first event has been recorded as an example. (Do not round Intermedlate
calculations. Enter any decreases to account balances and cash outflows with a minus sign. Not all cells will require entry.)
HART, ATTORNEY AT LAW
Effect of Transactions on the Financial Statements for Year 1
Balance Sheet
Income Statement
Stockholders
Equity
Assets
Liabilities
Statement of Cash
Flow
Retained
Net
Event
No.
+ Supplies
Accounts
Unearned
+
Cash
Revenue
Expense
!!
Payable
Revenue
Earnings
Income
36,000 +
36,000 +
36,000 OA
!!
1.
%3D
%3D
2.
%3D
3.
4.
5.
8.
7.
%23
%3D
8.
Totals
Expert Solution
Step 1
The horizontal analysis model arranges the balance sheet, income statement, and cash flows elements horizontally in a table. It is used to spot trends in the financial data over the period.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781305084087
Author:
Cathy J. Scott
Publisher:
Cengage Learning