Financial Statements Analysis for Lewis and Harper

The following events apply to Lewis and Harper, a public accounting firm, for the Year 1 accounting period: 1.Performed $87,000 of services for clients on account. 2.Performed $50,000 of services for cash. 3.Incurred $48,000 of other operating expenses on account. 4.Paid $20,000 cash to an employee for salary. 5.Collected $64,000 cash from accounts receivable. 6.Paid $17,000 cash on accounts payable. 7.Paid a $8,000 cash dividend to the stockholders. 8.Accrued salaries were $4,000 at the end of Year 1. 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 example. b.What is the amount of total assets at the end of Year 1? c.What is the balance of accounts receivable at the end of Year 1? d.What is the balance of accounts payable at the end of Year 1? f.What is net income for Year 1? g.What is the amount of net cash flow from operating activities for Year 1? 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 example.(Enter any decreases to account balances and cash outflows with a minus sign. Not all cells require entry.) Show less LEWIS AND HARPER Horizontal Statements Model For Accounting Year 1 Even t No. Balance Sheet Assets=Liabilities+Stockhol ders'EquityIncome Statement Statement of Cash Flows Cash+AccountsReceivable=AccountsPayable+SalariesPayable+RetainedEarnings Revenue-Expense= Net Income 1.+87,000 =++87,00087,000-=87,000 2.50,000 +=++50,00050,000-=50,00050,000 O A 3.+=48,000 ++ (48,000)-48,000 = (48,000) 4.(20,000)+=++ (20,000)-20,000 = (20,000) (20,000) O A 5.64,000 + (64,000) =++-=64,000 O A 6.(17,000)+=(17,000) ++-=(17,000) O A 7.(8,000) +=++(8,000)-=(8,000) F A 8.+=+4,000 +(4,000)-4,000 =(4,000) Total s69,000+23,000=31,000+4,000+57,000137,000-72,000=65,00069,000