Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cordelf incorporated expenienced the following events in Year 1, its first year of operation. 1. Recelved $53,000cash from the issue of common stock 2. Performed

image text in transcribed
image text in transcribed
image text in transcribed
Cordelf incorporated expenienced the following events in Year 1, its first year of operation. 1. Recelved $53,000cash from the issue of common stock 2. Performed services on account for $75,000 3. Paid a $5,300 cash dividend to the stockholders 4. Collected $59,000 of the accounts receivable 5. Paid $53,000 cash for other operating expenses. 6. Performed services for $18,000 cash. 7. Recognized $2,300 of accrued utilites expense at the end of the yeat Required: a. \& c. Identify the events that result in revenue or expense recognition and those which affect the statement of cash flows. In the Statement of Cash Flows column, use OA to designate operating octivity. FA for financing activity, or la for investing activity. b. Based on your response to Requirement a, determine the amount of net income reported on the Year 1 income statement d. Based on your response to Requirement c, determine the amount of cash flow from operating activities reported on the Year 1 statement of cash flows e. What is the before-and after-closing balance in the service revenue account? f. What is the balance of the retained earnings account that appears on the Year 1 balance sheet? Complete this question by entering your answers in the tabs below. Identify the events that result in revenue or expense recogntion and those which affect the statement of cash nows. In the statement of Cash Flows column, use OA to designate operating activity. FA for financing activity, or iA for imvesting activity. Note: Enter cash outhows with a minus slgn. Not all cells require input. Complete this question by entering your answers in the tabs below. Based on your response to Requirement a and c, determine the amount of net income, cash flow from operating activities. before- and after closing balance in the service revenue account and balance of the Retained Earnings account reported on the Year 1

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_step_2

Step: 3

blur-text-image_step3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing And Assurance Services

Authors: William Messier, Steven Glover, Douglas Prawitt

8th Edition

ISBN: 0078025435, 9780078025433

More Books

Students also viewed these Accounting questions

Question

What are the diff erences between groups and teams?

Answered: 1 week ago

Question

If you were Dans friend, what might you say to alter his behaviors?

Answered: 1 week ago