Burke Company earned $12,000 of service revenue on account during 2013 The company collected $9,800 cash from accounts receivable during 2013 Required Based on this information alone, determine the following for Burke Company a The balance of the accounts receivable that Burke would report on the D...

Burke Company Effect of Events on the 2013 Accounting Equation Assets Liabilities Sto ...

Burke Company earned $12,000 of service revenue on account during 2013. The company collected $9,800 cash from

Question:

Burke Company earned $12,000 of service revenue on account during 2013. The company collected $9,800 cash from during 2013.

Required
Based on this information alone, determine the following for Burke Company.
a. The balance of the that Burke would report on the December 31, 2013, balance sheet.
b. The amount of net income that Burke would report on the 2013 income statement.
c. The amount of net cash flow from operating activities that would be reported on the 2013 statement of cash flows.
d. The amount of retained earnings that would be reported on the 2013 balance sheet.
e. Why are the answers to Requirements b and c different?

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...