Eecr of accrwels o she fanciel stetemeats Exercise 2-108 LO 2-2, 2 Rosewood Inc. experienced the folloing events in Year 1, its finst year of operation Received $50,000 cash frem the issue of common stock 1. 2 Performed services on account for $67,000 Paid a $5,000 cash dividend to the stockholders. Collected $45,000 of the accounts reccivable. 5. Paid $49,000 cash for other operating expenses 4. Performed services for $10.000 cash 7. Recognized $2,000 of accrued utilities expense at the end of the year. Required a. Identify the events that result in revenuc or expense recognition. b. Based on your response to Requirement a, determine the amount of net income reported on the Year I income statement. e. Identify the events that affect the statement of cash flows d. Based on your response to Requirement c. determine the amount of cash flow from operating activities reported on the Year I statement of cash flows What is the halance of the Retained Earnings account that appears on the Year 1 balance sheet? a. & c. Event Statement of Revenue Expense Cash Flows 1, 2. 3 4. 5 7 b. Computation of Net Income d. Determine the missing amounts in cach of the following four independent scenarios: W Co. had a $5,000 beginning balance in accounts receivable on January 1, Year 4. During Year 4, the company carned $72,500 of revenue on account and collected $70,000 cash from accounts receivable. W Co. Accounts Receivable Summary Beginning AR Balance Increase in AR Reduction in AR Endings Accounts Receivable Balance b. W Co. had a $3,200 ending balance in accounts receivable on December 31, Year 4. During Year 4 the company carned $60,600 of revenue on account and collected $61,200 cash from accounts receivable. Based on this information alone, determine the amount of the beginning balance in accounts receivable. W Co. Accounts Receivable Summary Beginning AR Balance Increase in AR Reduction in AR Endings Accounts Receivable Balance