B Event No. 1 2 3 4 5 6 7 8 Totale C 1. Performed $70,000 of services for clients on account. 2. Performed $40,000 of services for cash. 3. Incurred $36,000 of other operating expenses on account. 4. Paid $10,000 cash to an employee for salary. 5. Collected $47,000 cash from accounts receivable. 6. Paid $16,000 cash on accounts payable. 7. Paid a $8,000 cash dividend to the stockholders. 8. Accrued salaries were $2,000 at the end of Year 1. n The following events apply to Lewis and Harper, a public accounting firm, for the Year 1 accounting period: $70,000 $40,000 $36,000 $10,000 $47,000 $16,000 $8,000 $2,000 Cash Assets D Required a. Show the effects of the events on the financial statements using a horizontal statements model like the following one. In the Statement of Cash Flows column, use OA to designate operating activity, IA for investment activity, FA for financing activity, NC for net change in cash, or leave blank to indicate the element is not affected by the event. The first event is shown as an (Enter any decreases to account balances and cash outflows with a minus sign.) + + + Accounts Receivable E 70,000 = = F Balance Sheet r Accounts Payable LEWIS AND HARPER Horizontal Statements Model For Accounting Year 1 Liabilities + G + + + H + Salaries Payable + + + + + Stockholders' Equity Retained Earnings 70,000 K Revenue 70,000 L M Income Statement Expense N O Net Income 70,000 Stat
The Glipwre eventi apply to Lewis and Hispec, a pubbic accounting fim, for the vear 1 acceuntins period Required a. Show the effects of the events on the firancal stabements using a horiuntal statements model like the following ene. In the for net chance in cash or lewe blank to indicate the element is not affected try the event. The fint event is shown at an (Enter any decreases to accoust balasces and cash outtlom with a minus sign.)
