Waddell Company had the following balances in its accounting records as of December 31, 2015: AssetsLiabilities and Equity
Cash$35,000 Accounts Payable$7,500
Accounts Receivable 9,000 Common Stock 40,000
Land 51,000 Retained Earnings 47,500
Total$95,000 Total$95,000
The following accounting events apply to Waddell Company’s 2016 fiscal year:
Jan.1 Acquired $20,000 cash from the issue of common stock.
Feb.1 Paid $6,000 cash in advance for a one-year lease for office space.
Mar.1 Paid a $2,000 cash dividend to the stockholders.
April1 Purchased additional land that cost $15,000 cash.
May1 Made a cash payment on accounts payable of $5,500.
July1
Received $9,600 cash in advance as a retainer for services to be performed monthly over the coming year.
Sept.1 Sold land for $30,000 cash that had originally cost $30,000.
Oct.1 Purchased $2,500 of supplies on account.
Dec.31 Earned $58,000 of service revenue on account during the year.
31 Received cash collections from accounts receivable amounting to $46,000.
31 Incurred other operating expenses on account during the year that amounted to
$28,000.
31 Recognized accrued salaries expense of $6,500.
31 Had $50 of supplies on hand at the end of the period.
31 The land purchased on April 1 had a market value of $20,000.
31 Recognized $500 of accrued interest revenue.
Required
Based on the preceding information, answer the following questions for Waddell Company. All questions pertain to the 2016 financial statements. (Hint: Enter items in general ledger accounts under the accounting equation before answering the questions.) (Do not round intermediate calculations. Enter any decreases to account balances with a minus sign.)