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asap The following transactions apply to Walnut Enterprises for Year 1, its first year of operations: 1. Received $50,000 cash from the issue of a
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The following transactions apply to Walnut Enterprises for Year 1, its first year of operations: 1. Received $50,000 cash from the issue of a short-term note with a 6 percent interest rate and a one-year maturity. The note was made on April 1. Year 1. 2. Received $130,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 6 percent 3. Paid $62,000 cash for other operating expenses during the year. 4. Paid the sales tax due on $110,000 of the service revenue for the year. Sales tax on the balance of the revenue is not due until Year 2. 5. Recognized the accrued interest at December 31, Year 1. The following transactions apply to Walnut Enterprises for Year 2: 1. Paid the balance of the sales tax due for Year 1. 2. Received $201.000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 6 percent. 3. Repaid the principal of the note and applicable interest on April 1. Year 2 4. Paid $102,500 of other operating expenses during the year. 5. Paid the sales tax due on $185,000 of the service revenue. The sales tax on the balance of the revenue is not due until Year 3. Required a. Organize the transaction data in accounts under an accounting equation, b-1. Prepare an income statement for Year 1 and Year 2 b-2. Prepare a statement of changes in stockholders' equity for Year 1 and Year 2 b-3. Prepare a balance sheet for Year 1 and Year 2 b-4. Prepare a statement of cash flows for Year 1 and Year 2 19 your answers in the tabs below. Req A Req B1 Year Req B1 Year Reg B2 Year Reg B2 Year Req B3 Year Req B3 Year Req 84 Year Req B4 Year 2 1 1 2 Prepare the statement of cash flows for Year 2. (Cash outflows should be indicated with a minus sign.) 2 1 WALNUT ENTERPRISES Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flows from operating activities $ 0 Net cash flow from operating activities Net cash flow from investing activities Cash flows from financing activities 0 Net cash flow from financing activities Net change in cash 0 $ 0 Ending cash balance Req B4 Year 1 Step by Step Solution
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