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Davos Company performed services on account for $56,500 in Year 1. Davos collected $45,200 cash from accounts receivable during Year 1, and the remaining
Davos Company performed services on account for $56,500 in Year 1. Davos collected $45,200 cash from accounts receivable during Year 1, and the remaining $11,300 was collected in cash during Year 2 Required a. e. & f. Record the Year 1 transactions in T-accounts and close the Year 1 Service Revenue account to the Retained Earnings account Record the Year 2 cash collection in the appropriate T-accounts b. & g. Show the Year 1 and Year 2 transactions in a horizontal statements model. c. Determine the amount of revenue Davos would report on the Year 1 income statement d. Determine the amount of cash flow from operating activities Davos would report on the Year 1 statement of cash flows h. Assuming no other transactions occur in Year 2, determine the amount of net income and the net cash flow from operating activities for Year 2
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