Question

Chapter LO 3- Davos Compuy performol services on account for S160.000 in 2016 Dos coled 5120000 cash fom acoounts civahle daring 3016 and the remaining $0.000 ws colctod in cash dus ng 2ol Required Recerd the Recend the 2006 tansactions in a horicenial stalements model lke theflewing one Determine the anount of Davos wodld repet on the 2016 ice statemest Determine the amosune of cash flow from operating activitics Daves would repoet on the 016 stateent of e. Open a T-account for Retained Earning and dlose the 30t6 Service Rec account to the Retained Eamings ao Recond the 2017 cah collection in the appoprite T-aconts Recend the 2087 traaction in a bhoral statomns model like the one shows in Reqaire Assaming so other tramactions oour in 2017, detemine the amoust of net income and the nct cash flow fom operating activics for 2017 Sye Chase startied and operated a small family anchitoctural frm in 3006. The firm wa aflectod by two ovens () Chas povided 525,000 of scrvices on account, and he puchasod 52,80 of sapplies on aceust. There were 5250 of sapplies on hand as of December 31, 23016 Required a. Open T-accounts and rocord the two tramactions in the accounts Recend the required year-end adjngetry to reflect the une of sapplies . Racond the peocoding transactions in a horisontall statements model lke the following one eRecond and post the required dosing enries and prepare a post-closing trial halanoe Exercise 3-11A Rrconding anarnd evenae and idemtifying its offect on finacial LO 3-1 Raylan roocined a 560000 cax advance paymnt on Jane 1 2006, for coesuling services to be performed in the utune Services were to be peovided or aone-year tere beginning Aune 1, 2016 Required Recoed in T-accousts the adjestcnt required as of December 31,3016 c. Recoed the preceding trammaction and related adjastmnt in a horinontal statements mode 삐삐

Answer 1

Ex 3-9A.

a.

Journal entries:

Date

Account titles and explanation

Debit

Credit

2016

Accounts receivable

160000

Sevice revenue

160000

(Services performed on credit)

Cash

120000

Accounts receivable

120000

(Cash collected)

T-Accounts:

Cash

Date

Particulars

Debit

Date

Particulars

Credit

Accounts receivable

120000

Accounts receivable

Date

Particulars

Debit

Date

Particulars

Credit

Sevice revenue

160000

Cash

120000

Sevice revenue

Date

Particulars

Debit

Date

Particulars

Credit

Accounts receivable

160000

b.

Assets

Liab.

+

Equity

Rev.

-

Exp

=

Net income

Cash flow

Cash

+

Accts. Rec.

Ret.Earn.

160000

160000

160000

0

160000

NA

NA

120000

-120000

120000

Operating activities

120000

40000

160000

160000

0

160000

c.

Amount of revenue to be reported= $ 160000

d.

Cashflow from operating activities=$ 120000