Waddell Company had the following balances in its accounting records as of December 31, Year 1: Assets Cash Accounts Receivable Land Totals. $ 52,000 41,000 31,000 $ 124,000 Liabilities and Stockholders' Equity Accounts Payable Common Stock Retained Earnings $ 22,000 84,000 18,000 $ 124,000 The following accounting events apply to Waddell Company's Year 2 fiscal year: January 1 Acquired $38,000 cash from the issue of common stock. February 1 Paid $5,400 cash in advance for a one-year lease for office space. March 1 Paid a $1,700 cash dividend to the stockholders. April 1 Purchased additional land that cost $31,000 cash. May 1 Made a cash payment on accounts payable of $20,000. July 1 Received $7,600 cash in advance as a retainer for services to be performed monthly over the coming year. September 1 Sold land for $23,000 cash that had originally cost $23,000. October 1 Purchased $990 of supplies on account. December 31 Earned $60,000 of service revenue on account during the year. December 31 Received cash collections from accounts receivable amounting to $53,000. December 31 Incurred other operating expenses on account during the year that amounted to $12,000. December 31 Recognized accrued salaries expense of $4,100. December 31 Had $170 of supplies on hand at the end of the period. December 31 The land purchased on April 1 had a market value of $34,000. December 31 Recognized $129 of accrued interest revenue.
Waddell Company had the following balances in its accounting records as of December 31, Year 1: Assets Cash Accounts Receivable Land Totals. $ 52,000 41,000 31,000 $ 124,000 Liabilities and Stockholders' Equity Accounts Payable Common Stock Retained Earnings $ 22,000 84,000 18,000 $ 124,000 The following accounting events apply to Waddell Company's Year 2 fiscal year: January 1 Acquired $38,000 cash from the issue of common stock. February 1 Paid $5,400 cash in advance for a one-year lease for office space. March 1 Paid a $1,700 cash dividend to the stockholders. April 1 Purchased additional land that cost $31,000 cash. May 1 Made a cash payment on accounts payable of $20,000. July 1 Received $7,600 cash in advance as a retainer for services to be performed monthly over the coming year. September 1 Sold land for $23,000 cash that had originally cost $23,000. October 1 Purchased $990 of supplies on account. December 31 Earned $60,000 of service revenue on account during the year. December 31 Received cash collections from accounts receivable amounting to $53,000. December 31 Incurred other operating expenses on account during the year that amounted to $12,000. December 31 Recognized accrued salaries expense of $4,100. December 31 Had $170 of supplies on hand at the end of the period. December 31 The land purchased on April 1 had a market value of $34,000. December 31 Recognized $129 of accrued interest revenue.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:b. What amount would Waddell report for land on the balance sheet?
c. What amount of net cash flow from operating activities would be reported on the statement of cash flows?
d. What amount of rent expense would be reported on the income statement?
e. What amount of total liabilities would be reported on the balance sheet?
f. What amount of supplies expense would be reported on the income statement?
g. What amount of unearned revenue would be reported on the balance sheet?
h. What amount of net cash flow from investing activities would be reported on the statement of cash flows?
i. What amount of total expenses would be reported on the income statement?
j. What total amount of service revenue would be reported on the income statement?
k. What amount of cash flows from financing activities would be reported on the statement of cash flows?
I. What amount of net income would be reported on the income statement?
m. What amount of retained earnings would be reported on the balance sheet?
$ 39,000✔
$ 110,990 X
Transcribed Image Text:Problem 2-35A (Algo) Effect of events on financial statements LO 2-3, 2-5, 2-6, 2-7, 2-8
Waddell Company had the following balances in its accounting records as of December 31, Year 1:
Assets
Cash
Accounts Receivable
Land
Totals
$ 52,000
41,000
31,000
$ 124,000
Liabilities and Stockholders'
Equity
Accounts Payable
Common Stock
Retained Earnings
$ 22,000
84,000
18,000
$ 124,000
The following accounting events apply to Waddell Company's Year 2 fiscal year:
January 1 Acquired $38,000 cash from the issue of common stock.
February 1 Paid $5,400 cash in advance for a one-year lease for office space.
March 1 Paid a $1,700 cash dividend to the stockholders.
April 1 Purchased additional land that cost $31,000 cash.
May 1 Made a cash payment on accounts payable of $20,000.
July 1 Received $7,600 cash in advance as a retainer for services to be performed monthly over the coming year.
September 1 Sold land for $23,000 cash that had originally cost $23,000.
October 1 Purchased $990 of supplies on account.
December 31 Earned $60,000 of service revenue on account during the year.
December 31 Received cash collections from accounts receivable amounting to $53,000.
December 31 Incurred other operating expenses on account during the year that amounted to $12,000.
December 31 Recognized accrued salaries expense of $4,100.
December 31 Had $170 of supplies on hand at the end of the period.
December 31 The land purchased on April 1 had a market value of $34,000.
December 31 Recognized $129 of accrued interest revenue.
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