Question

Required information Exercise 3-22A Recording events in the general journal, posting to T-accounts, and preparing closing entries LO 3-1, 3-2, 3-3, 3-4 (The following information applies to the questions displayed below.) At the beginning of Year 2, Oak Consulting had the following normal balances in its accounts: Account Cash Accounts receivable Accounts payable Common stock Retained earnings Balance $ 34,900 15,600 10,500 28,100 11,900 The following events apply to Oak Consulting for Year 2: 1. Provided $66,100 of services on account. 2. Incurred $3,000 of operating expenses on account. 3. Collected $46,700 of accounts receivable. 4. Paid $38,400 cash for salaries expense. 5. Paid $12,150 cash as a partial payment on accounts payable. 6. Paid a $9,200 cash dividend to the stockholders. Exercise 3-22A Part c. Show the beginning balances and the events in a horizontal statements model such as the following one: (In the Cash Flow column, use the initials "OA" for operating activities, "FA" for financing activities and "NC" for net change in cash. Select "NA" wherever reauired. Enter any decreases to account balance and cash outflows with a minus sian.)

Answer 1

	Assets				Liabilities		Stockholder's Equity			Income Statement
			Accounts		Accounts		Common		Retained	Revenue	-	Expenses	=	Net Income	Statement of
No.	Cash	+	Receivable	=	Payable	+	Stock	+	Earnings						cash flow
Bal.	$ 34,900.00		$ 15,600.00		$ 10,500.00		$ 28,100.00		$ 11,900.00
1)			$ 66,100.00						$ 66,100.00	$ 66,100.00				$ 66,100.00
2)					$    3,000.00				$   -3,000.00			$   3,000.00		$   -3,000.00
3)	$ 46,700.00		$ -46,700.00												$ 46,700.00	OA
4)	$ -38,400.00								$ -38,400.00			$ 38,400.00		$ -38,400.00	$ -38,400.00	OA
5)	$ -12,150.00				$ -12,150.00										$ -12,150.00	OA
6)	$   -9,200.00								$   -9,200.00						$   -9,200.00	FA
Total	$ 21,850.00		$ 35,000.00		$    1,350.00		$28,100.00		$ 27,400.00	$66,100.00		$41,400.00		$ 24,700.00	$-13,050.00