Question

Holloway Company earned $7,600 of service revenue on account during Year 1. The company collected $6,460 cash from accounts receivable during Year 1.

Required
Based on this information alone, determine the following for Holloway Company. (Hint: Record the events in general ledger accounts under an accounting equation before satisfying the requirements.) (Enter any decreases to account balances with a minus sign.)
a. The balance of the accounts receivable that would be reported on the December 31, Year 1, balance sheet.
b. The amount of net income that would be reported on the Year 1 income statement.
c. The amount of net cash flow from operating activities that would be reported on the Year 1 statement of cash flows.
d. The amount of retained earnings that would be reported on the Year 1 balance sheet.

Based on this information alone, determine the following for Holloway Company. (Hint: Record the events in general ledger accounts under an accounting equation before satisfying the requirements.) (Enter any decreases to account balances with a minus sign.) a. The balance of the accounts receivable that would be reported on the December 31, Year 1, balance sheet. b. The amount of net income that would be reported on the Year 1 income statement. c. The amount of net cash flow from operating activities that would be reported on the Year 1 statement of cash flows. d. The amount of retained earnings that would be reported on the Year 1 balance sheet. Complete this question by entering your answers in the tabs below. Accounting Equation Req A to D Based on this information alone, determine the following for Holloway Company. (Hint: Record the events in general ledger accounts under an accounting equation before satisfying the requirements.) (Enter any decreases to account balances with a minus sign.). HOLLOWAY COMPANY Effect of Events on the Year 1 Accounting Equation Assets Liabilities Accounts Cash Receivable + Event Stockholders' Equity Common Retained Stock Earnings + Earned revenue Collected accounts receivable Ending balance 0 = 0 Accounting Equation Req A to D >

Answer 1

holloway company

effect of events on the year 1 accounting equation

event	assets	=	liabilities	+	stakeholders equity
	cash	+	account receivable	=		+	coomon stocks	+	retained earnings
earned revenue		+	+$7600	=					+$7600
collected account receivable	$6460	+	-$6460	=
ending balance	$6460	+	$1140	=					$7600

a) the balance of account receivable that would be reported on december 31, year 1, balace sheet :

account receivable = $7600 - $6460 = $1140

b) the amount of net income that would be reported on the year 1 income statement :

earned revenue = $7600

c) amount of net cash flow from operating activities that would be reported on the year statement of cash flow :

net cash flow from operating activities = $6460

d) the amount of retained earning that would be reported on the year 1 balance sheet :

amount of retained earning = $7600

thank you