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Clark Bell started a personal financlal planning business when he accepted $62,000 cash as advance payment for managing the financial assets of a large estate.
Clark Bell started a personal financlal planning business when he accepted $62,000 cash as advance payment for managing the financial assets of a large estate. Bell agreed to manage the estate for a one-year perlod beginning June 1, Year 1 Required a. Show the effects of the advance payment and revenue recognition on the Year 1 financial statements using a horizontal statements model glven below. In the Statement of Cash Flows column, use OA to deslgnate operating activity. IA for Investing activity. FA for financing actlvity, NC for net change In cash and NA if the account Is not affected. (Do not round intermediate calculations and round your final answers to nearest whole number. Enter any decreases to account balances and cash outflows with a minus sign.) Horizontal Statements Model for Year 1 Balance Sheet Income Statement AssetsLiabilitiesEquity Expense Net Income Statement of Cash Event Flows CashUnearm 1. Advance payment 2. Revenue earned 62,000! 62.000 Totals 62,000 62.000 b. How much revenue would Bell recognize on the Yar 2 Income statement? (Do not round Intermedlate calculations and round your final answer to nearest whole number) C. What Is the amount of cash flow from operating activities In Year 2
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