Davos Company performed services on account for $$68,500$ in Year $1.$ Davos collected $$54,800$ cash from accounts receivable during

Year $1,$ and the remaining $$13,700$ 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 $2.$

Complete this question by entering your answers in the tabs below.

Req A E and F

Req B and G

Req C

Req D

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.

Note: Select $"1,2,$ or $3"$ for the transactions in the order they take place. Select $"$cl$"$ for closing entries.

Show the Year $1$ and Year $2$ transactions in a horizontal statements model.

Note: Enter any decreases to account balances and cash outflows with a minus sign. In the Statement of Cash Flows column, use the initials OA to designate operating activity

activity, IA to designate investing activity and NC for net change in cash. Not all cells require input.