Waddell Company had the following balances in its accounting records as of December 31, 2018 Assets Liabilities and Equity
Cash $55,000 Accounts Payable $23,000
Accounts Receivable 44,000 Common Stock 91,000
Land 32,000 Retained Earnings 17,000
Totals $131,000 $131,000
The following accounting events apply to Waddell Company’s 2019 fiscal year:
Jan. 1 Acquired $48,000 cash from the issue of common stock.
Feb. 1 Paid $5,700 cash in advance for a one-year lease for office space.
Mar. 1 Paid a $2,400 cash dividend to the stockholders.
April 1 Purchased additional land that cost $32,000 cash.
May 1 Made a cash payment on accounts payable of $20,000.
July 1 Received $7,400 cash in advance as a retainer for services to be performed monthly over the coming year.
Sept. 1 Sold land for $22,000 cash that had originally cost $22,000.
Oct. 1 Purchased $970 of supplies on account.
Dec. 31 Earned $68,000 of service revenue on account during the year.
31 Received cash collections from accounts receivable amounting to $54,000.
31 Incurred other operating expenses on account during the year that amounted to $13,000.
31 Recognized accrued salaries expense of $5,100.
31 Had $170 of supplies on hand at the end of the period.
31 The land purchased on April 1 had a market value of $32,000.
31 Recognized $116 of accrued interest revenue.
Required:
Based on the preceding information, answer the following questions for Waddell Company. All questions pertain to the Year 2 financial statements.
1. What two additional adjusting entries need to be made at the end of the year?
2. What amount would Waddell report for land on the balance sheet?
3. What amount of net cash flow from operating activities would be reported on the statement of cash flows?
4. What amount of rent expense would be reported on the income statement?
5. What amount of total liabilities would be reported on the balance sheet?
6. What amount of supplies expense would be reported on the income statement?
7. What amount of unearned revenue would be reported on the balance sheet?
8. What amount of net cash flow from investing activities would be reported on the statement of cash flows?
9. What amount of total expenses would be reported on the income statement?
10. What total amount of service revenue would be reported on the income statement?
11. What amount of cash flows from financing activities would be reported on the statement of cash flows?
12. What amount of net income would be reported on the income statement?
13. What amount of retained earnings would be reported on the balance sheet?
What two additional adjusting entries need to be made at the end of the year? (Select which of the following statements (is) are true by selecting an "X".)
a. Feb. 1, prepaid rent
b. June 1, cash dividends to stockholders
c. Aug. 1, cash payment; accounts payable
d. July 1, unearned revenue; cash was received in advance
e. Oct. 1, purchases on account
f. Dec. 31, accrued salaries expense
Refer the income statement, cash flow Statement, balance sheet and answer question A to L.
a. Land
b. Net cash flow from operating activities
c. Rent expense
d. Total liabilities
e. Supplies expense
f. Unearned revenue
g. Net cash flow from investing activities
h. Total expenses
i. Service revenue
j. Cash flows from financing activities
k. Net income
l. Retained earnings