E2.16 A small consulting firm had the following transactions over at ng transactions over a two-month period, December and no other transactions. Client services were performed and 20x4 and January 20X5, and no other transactions for total fees during December 20X4 for total fees are Orthus amount was collected the balance was collected in January 20X). Expenses incurred to December 20X4 and the balance was collected in January these clients during December 20X4 were $45,000, of which $20,000 wa mber 20X4 were $45,000, of which $20,000 was paid in December 20x4 and the remaining $25,000 was paid in January 20X5 Prepare two income statements for the month of December 2017 tatements for the month of December 20X4, one using an accrual based approach and one using a cash-based approach b) Which approach is in accordance with generally accepted accounting principles O label each of the following items as a capital expenditure or as a revenue and a) Salaries. b) Equipment. c) Advertising d) Patents. e) Repals and maintenance (routine). 1) Major building improvement or renovation. 8) Land E2.18 On January 1, 20X1, Emily's Boutique purchased equipment for $50,000 which is expected to have a 6-year useful life and a $5,000 salvage value. Using straight-line depreciation, a) what is the annual depreciation expense on this equipment? b) what is the monthly depreciation expense on this equipment? c) what is the annual depreciation expense on this equipment that will appear in the income statement for year ended December 31, 20X3? d) what is the accumulated depreciation on this equipment through December 31, 20X3? e) Show how this equipment will be presented in the Statement of Financial Position as of December 31, 20X3, under U.S. generally accepted accounting principles. E2.19 An engineering firm acquired a patent on January 1, 20X1, for $220,000 which is expected to be of value to the firm's operations for the next 4 years, through December 31, 20X4. a) What is the annual patent amortization expense? b) What will be the book or carrying value of the intangible asset Patents on the firms statement of financial position as of December 31, 20X3? 52.20 The Clothing Barn, Inc., a retailer, declared dividends of $2.00 per share on its 30,000 shares of outstanding common stock on December 20, 20X3, which was also the date of record, payable to shareholders on January 10, 20X4. The Clothing Barn, Inc. had a retained earnings balance 500,000 on January 1, 20X3, and it had net income for the year ended December 31, 20X3, of $120,000 a) What was the total amount of the declared dividend? Prepare a statement of Retained Earnings for the year-ended December 31, 20X3. c) What is the December 31, 20X3, retained earnings balance? d) will payment of the dividend on January 10, 20X4, affect retained earnings