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Cordell Inc. experienced the following events in Year 1, its first year of operation: 1. Received $40,000 cash from the issue of common stock. 2.

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Cordell Inc. experienced the following events in Year 1, its first year of operation: 1. Received $40,000 cash from the issue of common stock. 2. Performed services on account for $82,000. 3. Pald a $6,000 cash dividend to the stockholders. 4. Collected $76,000 of the accounts receivable. 5. Paid $53,000 cash for other operating expenses. 6. Performed services for $19,000 cash. 7. Recognized $3,500 of accrued utilities expense at the end of the year. 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 activity, FA for financing activity, or IA for investing activity. If the element is not affected by the event, leave the cell blank. 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? TO 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 activity, FA for financing activity, or IA for investing activity. If the element is not affected by the event, leave the cell blank. (Enter cash outflows with a minus sign. Not all cells require input.) Event Ravenue Expense Statement of Cash Flows 1 2 3 4. 5 6 7 Reg Band D to F > 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. b. Not income d. Net cash flow from operating activities Before closing balance After closing balance Balance of retained earnings

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