Clark Bell started a personal financial planning business when he accepted $66.000 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 Year 1: Required a. Show the effects of the advance payment and revenue recognition on the Year 1 financial statements using the following horizontal statements model. 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. If the account is not affected, leave the cell blank. b. How much revenue would Bell recognize on the Year 2 income statement? c. What is the amount of cash flow from operating activities in Year 2? Complete this question by entering your answers in the tabs below. Red A Reg B and C Show the effects of the advance payment and revenue recognition on the Year 1 financial statements using the following horizontal statements model. 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. If the account is not affected, leave the cell blank. (Do not round Intermediate calculations. Enter any decreases to account balances and cash outflows with a minus sign. Not all cells will require entry) BELL PERSONAL FINANCIAL PLANNING Horizontal Statements Model for Year 1 - Liabilities Stockholders Income Statement Equity Unearned Retained Assets Statement of Cash Flow ReqA Reg Band Show the effects of the advance payment and revenue recognition on the Year 1 financial statements using the following horizontal statements model in the cash Flows column, use OA to designate operating activity, IA for investing activity, FA for financing activity, and NC for not change in cash. If the account is not affected, leave the cell blank. (Do not round Intermediate calculations. Enter any decreases to account balances and cash outflows with a minus stan. Not all cells will require entry) Show less Assets BELL PERSONAL FINANCIAL PLANNING Horizontal Statements Model for Year 1 Liabilities Stockholders Income Statement Equity Unearned Retained Earnings Revenue Revenue Expense - Net Income Statement of Cash Flow Cash Event 1 Advance payment 2 Revenge med Totals 0= 0 0 0 Req Band > Req A Reg B and c How much revenue would Bell recognize on the Year 2 income statement? What is the amount of cash flow from operating activities in Year 27 (Do not round intermediate calculations and round your final answers to nearest whole dollar) 6 Revenue to be recognized in Year 2 c. Amount of cash flow from operating activities
