Homework Answers
Requirement a:
| CLARK BELL PERSONAL FINANCIAL PLANNING | |||||||||||||
| Horizontal Statements Model for Year 1 | |||||||||||||
| Event | Assets | = | Liabilities | + |
Stockholders' Equity |
Income Statement |
Statement of Cash Flow |
||||||
| Cash | = |
Unearned Revenue |
+ |
Retained Earnings |
Revenues | - | Expenses | = | Net income | ||||
| 1 | Advance payment | $59,000 | = | $59,000 | + | - | = | $59,000 | OA | ||||
| 2 | Revenue earned | = | ($34,417) | + | $34,417 | $34,417 | - | = | $34,417 | ||||
| Totals | $59,000 | = | $24,583 | + | $34,417 | $34,417 | - | $0 | = | $34,417 | $59,000 | ||
Calculations:
Revenue earned to be calculated for 7 months (June 1, Year 1 to Dec 31, Year 1).
So that revenue earned = (59,000 x 7/12) = $34,417
Requirement b:
| Revenue to be recognized in year 2 | $24,583 |
Calculations:
Revenue recognized in Year 2= Total advance received in Year 1 - revenue recognized in Year 1
= $59,000 - $34,417
=$24,583
Requirement c:
| Amount of cash flow from operating activities in Year 2 | $0 |
Explanation:
No amount to be received in Year 2. So that amount of cash flows from operating activities in Year 2 is $0
Add Answer to:
Clark Bell started a personal financial planning business when he accepted $59.000 cash as advance payment...
Clark Bell started a personal financial planning business when he accepted $58,000 cash as advance payment...
Clark Bell started a personal financial planning business when
he accepted $58,000 cash as advance payment for managing the
financial assets of a large estate. Bell agreed to manage the
estate for a one-year period beginning June 1, Year 1.
Required
a. Show the effects of the advance payment and
revenue recognition on the Year 1 financial statements using a
horizontal statements model given below. In the Statement of Cash
Flows column, use OA to designate operating activity, IA for...
Clark Bell started financial planning business when he accepted $67,000 cash as advance payment for managing...
Clark Bell started financial planning business when he accepted
$67,000 cash as advance payment for managing the financial assets
of a large estate. Bell agreed to manage the estate for a one-year
period beginning june 1, year 1.
CLARK BELL PERSONAL FINANCIAL PLANNING Horizontal Statements Model for Year 1 Balance Sheet Income Statement Llabilities Stockholders' Equity & Revenue - Expense - Net Income Unearned Retained Revenue Earnings Event Assets - Statement of Cash Flows Cash 1. Advance payment 2. Revenue...
Clark Bell started a personal financial planning business when he accepted $67.000 cash as advance payment...
Clark Bell started a personal financial planning business when he accepted $67.000 cash as advance payment for managing the financial assets of a large estate. Bell agreed to manage the estate for a one-year period beginning June 1, Year 1. Required a. Show the effects of the advance payment and revenue recognition on the Year 1 financial statements using a horizontal statements model given below. In the Statement of Cash Flows column, use OA to designate operating activity, IA for...
Exercise 3-10B James Jones received a $90,000 cash advance on March 1, Year 1. for legal...
Exercise 3-10B
James Jones received a $90,000 cash advance on March 1, Year 1. for legal services to be performed EX н E h. Assuming no other transactions occur in Year 2, determine the amount of net income and the g. Show the Year 2 transaction in a horizontal statements model like the one shown in Requiremena Laura Moss started and operated a small family consulting firm in Year 1. The firm was affected by two events: (1) Moss provided...
Troy Company earned $15,000 of cash revenue. Troy incurred $12,000 of utility expense on account during...
Troy Company earned $15,000 of cash revenue. Troy incurred
$12,000 of utility expense on account during Year 1. The company
made cash payments of $8,000 to reduce its accounts payable during
Year 1.
Required
Show the effects of the events on the financial statements
using a horizontal financial statements model like the following
one. In the Cash Flow column, use OA to designate operating
activity, IA for investment activity, FA for financing activity, NC
for net change in cash and...
Ultra Day Spa provided $89,850 of services during Year 1. All customers paid for the services with credit cards. Ultra s...
Ultra Day Spa provided $89,850 of services during Year 1. All
customers paid for the services with credit cards. Ultra submitted
the credit card receipts to the credit card company immediately.
The credit card company paid Ultra cash in the amount of face value
less a 1 percent service charge.
Required
a. Show the credit card sales (Event 1) and the
subsequent collection of accounts receivable (Event 2) in a
horizontal statements model like the one shown next. In the...
Golden Manufacturing Company started operations by acquiring $113,000 cash from the issue of common stock. On...
Golden Manufacturing Company started operations by acquiring
$113,000 cash from the issue of common stock. On January 1, Year 1,
the company purchased equipment that cost $103,000 cash, had an
expected useful life of five years, and had an estimated salvage
value of $10,300. Golden Manufacturing earned $96,030 and $64,380
of cash revenue during Year 1 and Year 2, respectively. Golden
Manufacturing uses double-declining-balance depreciation.
Golden Manufacturing Company started operations by acquiring $113,000 cash from the issue of common stock....
Exercise 13-11A Recording unearned revenue and identifying its effect on financial statements LO 13-1 Raylan received...
Exercise 13-11A Recording unearned revenue and identifying its effect on financial statements LO 13-1 Raylan received a $58,000 cash advance payment on June 1, Year 1, for consulting services to be performed in the future. Services were to be provided for a one-year term beginning June 1, Year 1. Required a. & b. Record the June 1 cash receipt in T-accounts and the adjustment required as of December 31, Year 1. c. Show the preceding transaction and related adjustment in a horizontal statements model. d....
Please use the accounting equation for this (Horizontal Financial Statement Model) Waddell Company had the following...
Please use the accounting equation for this (Horizontal
Financial Statement Model)
Waddell Company had the following balances in its accounting records as of December 31, Year 1: Assets Cash Accounts receivable Land Total $35,000 9,000 51,000 $95,000 Liabilities and Stk. Equity Accounts payable Common stock Retained earnings Total $ 7,500 40,000 47,500 $95,000 The following accounting events apply to Waddell Company's Year 2 fiscal year: Jan. 1 Acquired $20,000 cash from the issue of common stock. Mar. 1 Paid a...
1. Performed $104,500 of services for clients on account. 2. Performed $57,000 of services for cash....
1. Performed $104,500 of services for clients on account. 2. Performed $57,000 of services for cash. 3. Incurred $62,000 of other operating expenses on account 4. Paid $23,500 cash to an employee for salary. 5. Collected $71,000 cash from accounts receivable. 6. Paid $26,000 cash on accounts payable. 7. Paid a $7,000 cash dividend to the stockholders. 8. Accrued salaries were $5,400 at the end of Year 1. Required a. Show the effects of the events on the financial statements...
Clark Bell started a personal financial planning business when
he accepted $58,000 cash as advance payment for managing the
financial assets of a large estate. Bell agreed to manage the
estate for a one-year period beginning June 1, Year 1.
Required
a. Show the effects of the advance payment and
revenue recognition on the Year 1 financial statements using a
horizontal statements model given below. In the Statement of Cash
Flows column, use OA to designate operating activity, IA for...
Clark Bell started financial planning business when he accepted
$67,000 cash as advance payment for managing the financial assets
of a large estate. Bell agreed to manage the estate for a one-year
period beginning june 1, year 1.
CLARK BELL PERSONAL FINANCIAL PLANNING Horizontal Statements Model for Year 1 Balance Sheet Income Statement Llabilities Stockholders' Equity & Revenue - Expense - Net Income Unearned Retained Revenue Earnings Event Assets - Statement of Cash Flows Cash 1. Advance payment 2. Revenue...
Clark Bell started a personal financial planning business when he accepted $67.000 cash as advance payment for managing the financial assets of a large estate. Bell agreed to manage the estate for a one-year period beginning June 1, Year 1. Required a. Show the effects of the advance payment and revenue recognition on the Year 1 financial statements using a horizontal statements model given below. In the Statement of Cash Flows column, use OA to designate operating activity, IA for...
Exercise 3-10B
James Jones received a $90,000 cash advance on March 1, Year 1. for legal services to be performed EX н E h. Assuming no other transactions occur in Year 2, determine the amount of net income and the g. Show the Year 2 transaction in a horizontal statements model like the one shown in Requiremena Laura Moss started and operated a small family consulting firm in Year 1. The firm was affected by two events: (1) Moss provided...
Troy Company earned $15,000 of cash revenue. Troy incurred
$12,000 of utility expense on account during Year 1. The company
made cash payments of $8,000 to reduce its accounts payable during
Year 1.
Required
Show the effects of the events on the financial statements
using a horizontal financial statements model like the following
one. In the Cash Flow column, use OA to designate operating
activity, IA for investment activity, FA for financing activity, NC
for net change in cash and...
Ultra Day Spa provided $89,850 of services during Year 1. All
customers paid for the services with credit cards. Ultra submitted
the credit card receipts to the credit card company immediately.
The credit card company paid Ultra cash in the amount of face value
less a 1 percent service charge.
Required
a. Show the credit card sales (Event 1) and the
subsequent collection of accounts receivable (Event 2) in a
horizontal statements model like the one shown next. In the...
Golden Manufacturing Company started operations by acquiring
$113,000 cash from the issue of common stock. On January 1, Year 1,
the company purchased equipment that cost $103,000 cash, had an
expected useful life of five years, and had an estimated salvage
value of $10,300. Golden Manufacturing earned $96,030 and $64,380
of cash revenue during Year 1 and Year 2, respectively. Golden
Manufacturing uses double-declining-balance depreciation.
Golden Manufacturing Company started operations by acquiring $113,000 cash from the issue of common stock....
Exercise 13-11A Recording unearned revenue and identifying its effect on financial statements LO 13-1 Raylan received a $58,000 cash advance payment on June 1, Year 1, for consulting services to be performed in the future. Services were to be provided for a one-year term beginning June 1, Year 1. Required a. & b. Record the June 1 cash receipt in T-accounts and the adjustment required as of December 31, Year 1. c. Show the preceding transaction and related adjustment in a horizontal statements model. d....
Please use the accounting equation for this (Horizontal
Financial Statement Model)
Waddell Company had the following balances in its accounting records as of December 31, Year 1: Assets Cash Accounts receivable Land Total $35,000 9,000 51,000 $95,000 Liabilities and Stk. Equity Accounts payable Common stock Retained earnings Total $ 7,500 40,000 47,500 $95,000 The following accounting events apply to Waddell Company's Year 2 fiscal year: Jan. 1 Acquired $20,000 cash from the issue of common stock. Mar. 1 Paid a...
1. Performed $104,500 of services for clients on account. 2. Performed $57,000 of services for cash. 3. Incurred $62,000 of other operating expenses on account 4. Paid $23,500 cash to an employee for salary. 5. Collected $71,000 cash from accounts receivable. 6. Paid $26,000 cash on accounts payable. 7. Paid a $7,000 cash dividend to the stockholders. 8. Accrued salaries were $5,400 at the end of Year 1. Required a. Show the effects of the events on the financial statements...
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