Hart, Attorney at Law, Experienced the following transactions in 2018, the first year of operations.
1. Accepted $19,000 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 $68,000.
3. Purchased $1,450 of office supplies on account. Paid $1,305 of the amount due on accounts payable.
4. Paid a cash dividend to the stockholders of $4,900. Paid cash for operating expenses of $19,200.
5. Determined that at the end of the accounting period, $125 of office supplies remained on hand.
6. On December 31, Year 1, recognized the revenue that had been earned for services performed in accordance with Transaction 1.
Required:
Show the effects of the events on the financial 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.