Question

Holloway Company earned $18,000 of service revenue on account during Year 1. The company collected $14.000 cash from accounts receivable during Year 1 Required Based on this information alone, determine the following for Holloway Company. o. 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 008 Ences Complete this question by entering your answers in the tabs below. Accounting Equation Red A to D Based on this information alone, determine the following for Holloway Company. (Not all cells require input. Enter any decreases to account balances with a minus sign) HOLLOWAY COMPANY

Answer 1

Holloway company Effects of events on the year 1 Accounting Equation Assets Liabilities + Stockholders equity Event Accounts Common Hi Retained Cash 1+ stock Receivable earnings $18000 Earned revenue $18000 Collected aR $14000 ($14000) $1400o $4000 $18000 Ending balance ($18000 - $14000) cash flows a) Balance aucunts receivable that would be reporte on Dec 31, Year 1, Balance sheet would be $4000 b) The amount of 엉 net income that would be reported on the Year 1 Income statement will be $18000. c) The amount of g net cash flow from operating activities that would be reported on the year 1 statement og . will be $14000 (as cash received is this ant) or if we use indirect method then it Net Income - Increase li amounts receivable $18000 - $4000 retained earnings that would be reported on the Year 1 balance sheet will be $18000 (the amount of earned) $14000 영 rew enu d) Amount