Question

W caps lock A S shift Z Х 193 The Double-Entry Accounting System d. Determine the amount of net income on the Year 1 income statement. What is the amount of net cash flow from operating activities for Year 1? e. What amount of unearned revenue would Jones report on the December 31, Year 1, balance sheet? LO 3-1 Exercise 3-12B Using a T-account to determine cash flow from operating activities Barnes Inc. began the accounting period with a $105,000 debit balance in its Accounts Receivable account. During the accounting period, Barnes earned revenue on account of $448,000. The ending Accounts Receivable balance was $86,000. Required Based on this information alone, determine the amount of cash inflow from operating activities during the accounting period. (Hint: Use a T-account for Accounts Receivable. Enter the debits and credits for the given events, and solve for the missing amount.) LO 3-1 2 Exercise 3-13B Using a T-account to determine cash flow from operating activities Hun Company began the accounting period with a $36,000 credit balance in its Accounts Payable ac- count. During the accounting period, Hun incurred expenses on account of $108,000. The ending Accounts Payable balance was $48,000. t Required Rund on thio information, determine the amount of cash outflow for expenses during the accounting Payable. Enter the debits and credits for the given events,
Exercise 3-11B

Answer 1

Part a			Cash Account
	Date	Particulars	Amount	Date	Particulars	Amount
	1-Mar	Unearned Service Reveue	$ 90,000.00	31-Dec	Balance carried forward	$ 90,000.00
			$ 90,000.00			$ 90,000.00
Part b
			Unearned Service Revenue
	Date	Particulars	Amount	Date	Particulars	Amount
	31-Dec	Service Revenue	$ 75,000.00	1-Mar	Cash	$ 90,000.00
		(90000/12*10)
	31-Dec	Balance carried forward	$ 15,000.00
			$ 90,000.00			$ 90,000.00
			Service Revenue
	Date	Particulars	Amount	Date	Particulars	Amount
	31-Dec	Balance carried forward	$ 75,000.00	31-Dec	Unearned Service Revenue	$ 75,000.00
			$ 75,000.00			$ 75,000.00

Part C

Asset (cash)	=	Liab (unearned service Rev)	+	Equity (Service Rev)
$ 90,000.00	=	$ 15,000.00	+	$ 75,000.00
Rev	-	Exp	=	Net Income
$ 75,000.00	-	$                 -	=	$ 75,000.00
Cash Flow
Cash Flow From Operating Activites		$ 90,000.00