Hart Attorney at Law experienced the follwoing transactions in 2016, the first year of operations: Accepted $19,800 on April 1, Year 1, as a retainer for services to be performed evenly over the next 12 months. Performed legal services for cash of $68,500. Purchased $1,050 of office supplies on account. Paid $945 of the amount due on accounts payable. Paid a cash dividend to the stockholders of $4,600. Paid cash for operating expenses of $20,700. Determined that at the end of the accounting period $150 of office supplies remained on hand. On December 31, Year 1, recognized the revenue that had been earned for services performed in accordance with Transaction 1.
Problem: Show the effects of the events on the fianncial statements using a horizontal statement model. In the cash flow column, use the initials OA to designate 'operating activity'; IA for 'investing activity'; FA for 'financial activity'; and NC for 'net change in cash'. Use NA to indicate accounts not affected by the event. Event #CashSupplesAccts. PayUnearn. Rev. Ret. Earn. RevExpNet Inc. Cash Flow1$36,000NANA$36,000NA$36,000NAN A$36,000OA2