Answer only. **Year 1 Financial Overview of Lee Inc.**In Year 1, Lee Inc. billed its customers $56,600 for services performed. The company collected $41,600 of the amount billed. Lee incurred $36,400 of other operating expenses on account. Lee paid $24,300 of the accounts payable. Lee acquired $37,000 cash from the issue of common stock. The company invested $13,000 cash in the purchase of land.**Required***(Hint: Identify the six events described in the paragraph and record them in general ledger accounts under an accounting equation before attempting to answer the questions.)* Use the preceding information to answer the following questions:- **a. What amount of revenue will Lee report on the Year 1 income statement?**- **b. What amount of cash flow from revenues will be reported on the statement of cash flows?**- **c. What is the net income for the period?**- **d. What is the net cash flow from operating activities for the period?**- **e. What is the amount of net cash flow from investing activities?**- **f. What is the amount of net cash flow from financing activities?**- **g. What amounts of total assets, liabilities, and equity will be reported on the year-end balance sheet?****Complete this question by entering your answers in the tabs below.**[Image of interactive tabs for entering answers]**[Hint: Identify the six events described in the paragraph and record them in general ledger accounts under an accounting equation before attempting to answer the questions: (Enter any decreases to account balances with a minus sign.)]** **Accounting Equation: Identifying Effects on General Ledger Accounts****Hint:** Identify the six events described in the paragraph and record them in general ledger accounts under an accounting equation before attempting to answer the questions. Use the preceding information to answer the following questions: (Enter any decreases to account balances with a minus sign.)**LEE INC.****Effect of Events on the General Ledger Accounts**| Event | Assets | Liabilities | Stockholders' Equity ||-----------------------------------|--------------------------------------|------------------------------|------------------------------------|| | Cash | Accounts Receivable | Land | Accounts Payable | Common Stock | Retained Earnings ||-----------------------------------|---------------|---------------------|-------|------------------|---------------|------------------|| 1. Sales on account | | | | | | || 2. Collected accounts receivable | | | | | | || 3. Incurred expense | | | | | | || 4. Paid accounts payable | | | | | | || 5. Issue of stock | | | | | | || 6. Purchase land | | | | | | ||-----------------------------------|---------------|---------------------|-------|------------------|---------------|------------------|| Totals | | | | | | |This table is used to record six specific accounting transactions for LEE INC. It includes columns for recording the impacts of these events on various accounts within the "Assets," "Liabilities," and "Stockholders' Equity" sections of the General Ledger. The table format helps to ensure that the effects of each transaction are properly accounted for, maintaining the balance of the accounting equation where:**Assets = Liabilities + Stockholders' Equity****Detailed Explanation:**- **Columns for Assets**: The table includes sub-columns for Cash, Accounts Receivable, and Land.- **Columns for Liabilities**: Only one sub-column is present, for Accounts Payable.- **Columns for Stockholders' Equity**: This is divided into Common Stock and Retained Earnings sub-columns.Each row represents the effect of a specific event listing (Sales on account, Collected accounts receivable, etc.). The financial impact of these

The general accounting equation that is to be used while preparing the books is as follows: Assets =…

In Year 1, Lee Inc. billed its customers $56,600 for services performed. The company collected $41,600 of the amount billed. Lee incurred $36,400 of other operating expenses on account. Lee paid $24,300 of the accounts payable. Lee.acquired $37,000 cash from the issue of common stock. The company invested $13,000 cash in the purchase of land. Required (Hint: Identify the six events described in the paragraph and record them in general ledger accounts under an accounting equation before attempting to answer the questions.) Use the preceding information to answer the following questions: a. What amount of revenue will Lee report on the Year 1 income statement? b. What amount of cash flow from revenue will be reported on the statement of cash flows? c. What is the net income for the period? d. What is the net cash flow from operating activities for the period? f. What is the amount of net cash flow from investing activities? g. What is the amount of net cash flow from financing activities? h. What amounts of total assets, liabilities, and equity will be reported on the year-end balance sheet? Complete this question by entering your answers in the tabs below. Accounting Equation Req A to H (Hint: Identify the six events described in the paragraph and record them in general ledger accounts under an accounting equation before attempt mation to answer the following questions: (Enter any decreases to account balances with a minus s

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter3: The Basics Of Record Keeping And Financial Statement Preparation: Income Statement

Section: Chapter Questions

Problem 9E