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Hart, Attorney at Law, experienced the following transactions in Year 1, the first year of operations: 1. Accepted $17,100 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 $65,000. 3. Purchased $1,150 of office supplies on account. 4. Paid $1,035 of the amount due on accounts payable. 5. Paid a cash dividend to the stockholders of $5,700. 6. Paid cash for operating expenses of $20,700. 7. Determined that at the end of the accounting period, $140 of office supplies remained on hand. 8. On December 31, Year 1, recognized the revenue that had been earned for services performed in accordance with Transaction 1. Required Show the effects of the events on the financial statements using a horizontal statements model like the following one. In the Cash Flow column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, NC for net change in cash and NA to indicate accounts not affected by the event. The first event has been recorded as an example. (Do not round intermediate calculations. Enter any decreases to account balances and cash outflows with a minus sign.)

Hart, Attorney at Law, experienced the following transactions in Year 1, the first year of operations: 1. Accepted $17,100 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 $65,000. 3. Purchased $1,150 of office supplies on account. 4. Paid $1,035 of the amount due on accounts payable. 5. Paid a cash dividend to the stockholders of $5,700. 6. Paid cash for operating expenses of $20,700. 7. Determined that at the end of the accounting period, $140 of office supplies remained on hand. 8. On December 31, Year 1, recognized the revenue that had been earned for services performed in accordance with Transaction 1. Required Show the effects of the events on the financial statements using a horizontal statements model like the following one. In the Cash Flow column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, NC for net change in cash and NA to indicate accounts not affected by the event. The first event has been recorded as an example. (Do not round intermediate calculations. Enter any decreases to account balances and cash outflows with a minus sign.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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mework 2 i Saved Help Hart, Attorney at Law, experienced the following transactions in Year 1, the first year of operations: 1. Accepted $17,100 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 $65,000. 3. Purchased $1,150 of office supplies on account. 4. Paid $1,035 of the amount due on accounts payable. 5. Paid a cash dividend to the stockholders of $5,70. 6. Paid cash for operating expenses of $20,700. 7. Determined that at the end of the accounting period, $140 of office supplies remained on hand. 8. On December 31, Year 1, recognized the revenue that had been earned for services performed in accordance with Transaction 1. Required Show the effects of the events on the financial statements using a horizontal statements model like the following one. In the Cash Flow column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, NC for net change in cash and NA to indicate accounts not affected by the event. The first event has been recorded as an example. (Do not round intermediate calculations. Enter any decreases to account balances and cash outflows with a minus sign.)
Transcribed Image Text:mework 2 i Saved Help Hart, Attorney at Law, experienced the following transactions in Year 1, the first year of operations: 1. Accepted $17,100 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 $65,000. 3. Purchased $1,150 of office supplies on account. 4. Paid $1,035 of the amount due on accounts payable. 5. Paid a cash dividend to the stockholders of $5,70. 6. Paid cash for operating expenses of $20,700. 7. Determined that at the end of the accounting period, $140 of office supplies remained on hand. 8. On December 31, Year 1, recognized the revenue that had been earned for services performed in accordance with Transaction 1. Required Show the effects of the events on the financial statements using a horizontal statements model like the following one. In the Cash Flow column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, NC for net change in cash and NA to indicate accounts not affected by the event. The first event has been recorded as an example. (Do not round intermediate calculations. Enter any decreases to account balances and cash outflows with a minus sign.)
Required Show the effects of the events on the financial statements using a horizontal statements model like the following one. In the Cash Flow column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, NC for, net change in cash and NA to indicate accounts not affected by the event. The first event has been recorded as an example. (Do not round intermediate calculations. Enter any decreases to account balances and cash outflows with a minus sign.) HART ATTORNEY AT LAW Effect of Transactions on the Financial Statements for Year 1 Stockholders' Assets Liablities Income Statement %D Equity Retained Earnings Statement of Cash Flows Event Unearned Revenue Accounts Revenue Expense = Net Income Cash Supplies %3D Payable 17,100 OA 1. 17,100 + 17,100 + %3D 2. 3D 3. + 4. 5. + %3D 6. + %3D 7. 8. 0 = 17,100 17,100 + 17,100 + Totals
Transcribed Image Text:Required Show the effects of the events on the financial statements using a horizontal statements model like the following one. In the Cash Flow column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, NC for, net change in cash and NA to indicate accounts not affected by the event. The first event has been recorded as an example. (Do not round intermediate calculations. Enter any decreases to account balances and cash outflows with a minus sign.) HART ATTORNEY AT LAW Effect of Transactions on the Financial Statements for Year 1 Stockholders' Assets Liablities Income Statement %D Equity Retained Earnings Statement of Cash Flows Event Unearned Revenue Accounts Revenue Expense = Net Income Cash Supplies %3D Payable 17,100 OA 1. 17,100 + 17,100 + %3D 2. 3D 3. + 4. 5. + %3D 6. + %3D 7. 8. 0 = 17,100 17,100 + 17,100 + Totals
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