Clark Bell started a personal financial planning business when he accepted $36,000 cash as advance payment for

Question:

Clark Bell started a personal financial planning business when he accepted $36,000 cash as advance payment for managing the financial assets of a large estate. Bell agreed to manage the estate for a one-year period beginning June 1, 2016.

Required

a. Show the effects of the advance payment and revenue recognition on the 2016 financial statements using a horizontal statements model like the following one. In the Cash Flows column, use OA to designate operating activity, IA for investing activity, FA for financing activity, and NC for net change in cash. Use NA if the account is not affected.

Clark Bell started a personal financial planning business when he

b. How much revenue would Bell recognize on the 2017 income statement?
c. What is the amount of cash flow from operating activities in 2017?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...