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Simpson Company had the following balances in its accounting records as of December 31, Yeart Assets Cash Accounts Receivable Land Total $ 40,000 9,000 51,000 $100,000 Liabilities and Equity Accounts Payable Common Stock Retained Earnings Total $ 7,500 45,000 47,500 $100,000 The following accounting events apply to Simpson Company's Year 2 fiscal year: Jan. 1 Acquired $20,000 cash from the issue of common stock. Feb. 1 Paid $6,000 cash in advance for a one-year lease for office space. Mar. 1 Paid a $2,000 cash dividend to the stockholders. Apr. 1 Purchased additional land that cost $15,000 cash. May 1 Made a cash payment on accounts payable of $5,500. July 1 Received $9,600 cash in advance as a retainer for services to be performed monthly over the coming year Sept. 1 Sold land for $30,000 cash that had originally cost $30,000. Oct. 1 Purchased $2,500 of supplies on account. Dec. 31 Earned $58,000 of service revenue on account during the year. 31 Received cash collections from accounts receivable amounting to $46,000. 31 Incurred other operating expenses on account during the year that amounted to $28,000. 31 Recognized accrued salaries expense of $6,500. 31 Had $50 of supplies on hand at the end of the period. 31 The land purchased on April i had a market value of $20,000 Required ased on the preceding information, answer the following questions for Simpson Company. All questions pertain to the Year 2 financial statements. (Hint: Enter items in general ledger accounts under the accounting equation before answering the questions a. What amount would Simpson report for land on the balance sheet? 1. What amount of net cash flow from operating activities would be reported on the statement of cash flows? c. What amount of rent expense would be reported on the income statement? d. What amount of total liabilities would be reported on the balance sheet? e. What amount of supplies expense would be reported on the income statement? What amount of unearned revenue would be reported on the balance sheet? g. What amount of net cash flow from investing activities would be reported on the statement of cash flows? h. What amount of total expenses would be reported on the income statement? What amount of service revenue would be reported on the income statement? J. What amount of cash flows from financing activities would be reported on the statement of cash flows? k. What amount of net income would be reported on the income statement? What amount of retained earnings would be reported on the balance sheet? SIMPSON COMPANY Accounting Equation Stockholders' Equity Accounts Common Uncanned Prepaid Rent Supplies I Land Salaries Payable 90001 6.000 2.000 05.000 15.000 5.500 = 5.500 9.600 20.000 30,000 2500 Jan 1 Feb 1 Mar. 1 April May 1 July 1 Sept. 1 Oct. 1 Dec 31 Dec. 31 Dec. 31 Dec 31 Dec 31 Dec 31 Dec. 31 Dec. 31 2.500 T L 58.000 (46.000)| 46.000 2 1 28.000 6 2.450) .00 2.450) PIT 57.100 21.000 21.000 50 81.000 30 050 6.500 600 What amount would Simpson report for land on the balance sheet? What amount of net cash flow from operating activities would be reported on the statement of cash flows? What amount of rent expense would be reported on the income statement? What amount of total liabilities would be reported on the balance sheet? What amount of supplies expense would be reported on the income statement? What amount of unearned revenue would be reported on the balance sheet? What amount of net cash flow from investing activities would be reported on the statement of cash flows? What amount of total expenses would be reported on the income statement? What amount of service revenue would be reported on the income statement? What amount of cash flows from financing activities would be reported on the statement of cash flows? What amount of net income would be reported on the income statement? What amount of retained earnings would be reported on the balance sheet? Show less 81,000 a b. d. Land Net cash flow from operating activities Rent expense Total liabilities Supplies expense Unearned revenue Net cash flow from investing activities Total expenses Service revenue Cash flows from financing activities Net income Retained oamings 58.000

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