6 Exercise 8-8A (Algo) Effect of double-declining balance depreciation on financial statements LO 8-3 22 Golden Manufacturing Company started operations by acquiring $85,000 cash from the issue of common stock On January 1 Year 1 the company purchased equipment that cost $75,000 cash, had an expected useful life of five years, and had an estimated salvage value of $7.500. Golden Manufacturing earned $93,750 and 561,850 of cath revenue during Year 1 and Year 2, respectively Golden Manufacturing uses double-declining balance depreciation Required a Record the transactions in a horizontal statements model b-1. Prepare income statements for Year 1 and Year 2 -2. Prepare balance sheets for Year 1 and Year 2 b-3. Prepare statements of cash flows for Year 1 and Year 2 ook Print Complete this question by entering your answers in the tabs below. Red A Reg 1 Inc Reg 2 B Reg 3 Strmt St Sheet Cash Flows Record the transactions in a horizontal statements model: (In the Statement of Cash Flows column, use the initial OA to designate operating activity, IA for investing acti activity, and NC for net change in cash. Enter any decreases to account balances and cash outflows with ainus sign. Not all cells require input. Do not round intermedia Round your final answers to the nearest whole dollar) GOLDEN MANUFACTURING COMPANY Horizontal Statements Model Balance Sheet Assets Stockholder's Equity Revenue Book Value Common Retained of Stock Earnings Equipment Income Statement Expense Not Income Statement of Cush Flows + Event Cash Yeart Issue stock 6 of 9 13 HUIP SOVELLAL Chec Complete this question by entering your answers in the tabs below. Reg A Reg B1 Inc Stmt Req B2 Bal Sheet Reg B3 Stmt Cash Flows Record the transactions in a horizontal statements model: (In the Statement of Cash Flows column, use the initials OA to designate operating activity, IA fom activity, and NC for net change in cash. Enter any decreases to account balances and cash outflows with a minus sign. Not all cells require input. Do not rou Round your final answers to the nearest whole dollar) GOLDEN MANUFACTURING COMPANY Horizontal Statements Model Income Statement Expense = Not Income Revenue Event Balance Sheet Assets Stockholder's Equity Book Value Common of Retained Stock Equipment Earnings Statement of Cash Flows Cash Year 1 Issue stock Purchase equipment Revenue Depreciation expense Balance Year 2 Beg bal Revenue Depreciation expense End, bal ++ Req 1 Inc Stmt > 9 D Next > B-2. Prepare b-3. Prepare statements of cash flows for Year 1 and Year 2. Complete this question by entering your answers in the tabs below. Req A Req B1 Inc Stmt Req B2 Bal Sheet Req B3 Stmt Cash Flows Prepare income statements for Year 1 and Year 2. (Do not round intermediate calculatio dollar amount.) GOLDEN MANUFACTURING COMPANY Income Statements Year 1 Year 2 Req A Req B1 Inc Req B2 Bal Req B3 Stmt Stmt Sheet Cash Flows Prepare balance sheets for Year 1 and Year 2. (Do not round intermediate calculations. Rou dollar amount.) GOLDEN MANUFACTURING COMPANY Balance Sheets Year 1 Year 2 Assets Total Assets Stockholders' equity Total stockholders' equity