61,500 1,500 18,000 1,500 42,300 21,000 37,700 25,000 3,500 200 Company was formed on January 1, Year 1. Events Affecting the Year 1 Accounting Period Acquired cash from the issue of common stock Purchased supplies on account Purchased land with cash Paid cash to settle accounts payable created in Event 2 Recognized revenue on account Paid cash for other operating expenses Collected cash from accounts receivable Purchased equipment January 1 with a 5-year promissory note with 4% interest compounded annually Information for Year 1 Adjusting Entries Recognized accrued salaries on December 31, Year 1 Supplies on hand at the end of the accounting period Calculate interest from promissory note, due January 1 Year 2 Calculate straight-line depreciation for equipment. The equipment has a useful life of 7 years with an expected $2500 salvage value Calculate Bad Debt at 2% of Accounts Receivable. Using the horizontal model, answer the following questions: What are the company's total Current Assets? What is the company's Net Cash Flow from Financing Activities? What is the Retained Earnings? What is the total Interest Expense? What is the company's Net Cash Flow from Investing Activities? What are total Operating Expenses? What is the Net Accounts Receivable balance? What is the company's Net Income? What is the company's total Common Stock? Cash Flow Type Interest Pay Common Stock Cash A/R Allow Supplies Equip. A/D Land Salaries Pay A/P N/P R/E = Revenue Expense - Net Income What is it? FA 61,500 = 61,500 1,500 1,500 0 1 2 3 4 5 18,000 = IA = (1,500 (18,000) (1,500) 42,300 (21,000) 37.700 (37,700) = 42.300 42,300 Revenue -21,000 Operating Exp 6 21,000 OA OA = 25,000 25,000 0 0 42,300 (21,000 0 0 0 (3.500) (1.300) (1,000) (3,214) (92) 12,194 = 3.500 (1.300) 7 8 9 10 11 12 13 Totals = = 1,000 3,500 1,300 1,000 3,214 92 30,106 -3,500 Salaries Exp -1,300 Supplies Exp -1,000 Interest Exp -3,214 Depr. Exp -92 Bad Debt Exp 12,194 (3,214) = (92) (92) 58,700 4,600 200 25,000 (3,214) 18,000 25,000 3,500 1,000 61,500 42,300