4. Bumonal so00 cain bem a Sana. 6. Pad a 31.000 tast dieident. Required tion of tife Deceatier 3 t. Yrar 1, Balanre shect? Yar Li balafice sheet. c. Determine the amouat of tee incoose that swid appeat in the Yeaf 1 insenc starmati: atatemeet of caih Hows Bowusemant d. Accounting for Accruals Exercise 2-5A Recording accounts receivable and other events in a horizontal financial LO 2-1, 2-2, 2-4 statements model The Containers Ine; experienced the following events during its first year of operations, Year I: 1. Acquired $42,000 cash by issuing common stock. 2. Earned $25,000 revenue on accotint. 3. Paid $18,000 eash for operating expenses. 4. Borrowed $10,000 cash from a bank. 5. Collected $22,000 of the balance in accounts receivable. 6. Paid a $1,000 cash dividend. Required Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash fows. More specifically, record the amounts of the events into the model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). The first transuction is shown as an example. 5. Collected $22,000 of the balance in accounts receivabie. 6. Paid a $1,000cash dividend, Required Uve a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. More specifically, record the amounts of the events into the model. Also, in the Statement of Cash Flows column, classify the cash flows its operating activities (OA), investing activities ( A), or financing activities (FA). The firs transaction is shown as an example. a. Would the accounts receivable account appear in the assets, liabilities, or stockholders' equity section of the December 31 , Year 1 , balance sheet? b. Determine the balance of the accounts receivable account that would appear on the December 31 . Year 1 , balance-sheet. c. Determine the amount of net income that would appear in the Year 1 income statement A1 Desermine the amount of the cash flow from operating activities that would appeir in the Year I saltement, and statement of cash flows. More specifically cacn cventallects the balance sheet, income model. Also, in the Statement of Cash Flows column, classify the cash ffows of the events into the (OA), investing activities (IA), or financing activities (FA). The first transaction is shown as an example. a. Would the accounts receivable account appear in the assets, liabilities, or stockholders' equity section of the December 31 , Year 1 , balance sheet? b. Determine the balance of the accounts receivable account that would appear on the December 31 . Year I, balance sheet. c. Determine the amount of net income that would appear in the Year 1 income statement. d. Delermine the amount of the cash flow from operating activities that would appear in the Year I statement of eash flows. e. Explain why the amount determined in Requirement e differs from the amount determined in Requirement d. 4. Bumonal so00 cain bem a Sana. 6. Pad a 31.000 tast dieident. Required tion of tife Deceatier 3 t. Yrar 1, Balanre shect? Yar Li balafice sheet. c. Determine the amouat of tee incoose that swid appeat in the Yeaf 1 insenc starmati: atatemeet of caih Hows Bowusemant d. Accounting for Accruals Exercise 2-5A Recording accounts receivable and other events in a horizontal financial LO 2-1, 2-2, 2-4 statements model The Containers Ine; experienced the following events during its first year of operations, Year I: 1. Acquired $42,000 cash by issuing common stock. 2. Earned $25,000 revenue on accotint. 3. Paid $18,000 eash for operating expenses. 4. Borrowed $10,000 cash from a bank. 5. Collected $22,000 of the balance in accounts receivable. 6. Paid a $1,000 cash dividend. Required Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash fows. More specifically, record the amounts of the events into the model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). The first transuction is shown as an example. 5. Collected $22,000 of the balance in accounts receivabie. 6. Paid a $1,000cash dividend, Required Uve a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. More specifically, record the amounts of the events into the model. Also, in the Statement of Cash Flows column, classify the cash flows its operating activities (OA), investing activities ( A), or financing activities (FA). The firs transaction is shown as an example. a. Would the accounts receivable account appear in the assets, liabilities, or stockholders' equity section of the December 31 , Year 1 , balance sheet? b. Determine the balance of the accounts receivable account that would appear on the December 31 . Year 1 , balance-sheet. c. Determine the amount of net income that would appear in the Year 1 income statement A1 Desermine the amount of the cash flow from operating activities that would appeir in the Year I saltement, and statement of cash flows. More specifically cacn cventallects the balance sheet, income model. Also, in the Statement of Cash Flows column, classify the cash ffows of the events into the (OA), investing activities (IA), or financing activities (FA). The first transaction is shown as an example. a. Would the accounts receivable account appear in the assets, liabilities, or stockholders' equity section of the December 31 , Year 1 , balance sheet? b. Determine the balance of the accounts receivable account that would appear on the December 31 . Year I, balance sheet. c. Determine the amount of net income that would appear in the Year 1 income statement. d. Delermine the amount of the cash flow from operating activities that would appear in the Year I statement of eash flows. e. Explain why the amount determined in Requirement e differs from the amount determined in Requirement d
