Question

Hart, Attorney at Law, experienced the following transactions in Year 1, the first year of operations:

1. Accepted $36,000 on April 1, Year 1, as a retainer for services to be performed evenly over the next 12 months.
2. Performed legal services for cash of $54,000.
3. Purchased $2,800 of office supplies on account.
4. Paid $2,400 of the amount due on accounts payable.
5. Paid a cash dividend to the stockholders of $5,000.
6. Paid cash for operating expenses of $31,000.
7. Determined that at the end of the accounting period $200 of office supplies remained on hand.
8. On December 31, Year 1, recognized the revenue that had been earned for services performed in accordance with Transaction 1.

Answer 1

Step-by-step explanation:

Hart, Attorney at Law, experienced the following transactions in Year 1, the first year of operations:

1. Accepted $36,000 on April 1, Year 1, as a retainer for services to be performed evenly over the next 12 months.

2. Performed legal services for cash of $54,000.

3. Purchased $2,800 of office supplies on account.

4. Paid $2,400 of the amount due on accounts payable.

5. Paid a cash dividend to the stockholders of $5,000.

6. Paid cash for operating expenses of $31,000.

7. Determined that at the end of the accounting period $200 of office supplies remained on hand.

8. On December 31, Year 1, recognized the revenue that had been earned for services performed in accordance w