Exercise 2-5A Recording accounts receivable and other events in a horizontal financial statements model LO 2-1, 2-2, 2-4 The Containers Inc experienced the following events during its first year of operations, Year 1: 1. Acquired $42,000 cash by issuing common stock 2. Earned $25,000 revenue on account. 3. Paid $18,000 cash 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 Show the effects of the events on the financial statements using a horizontal financial statements model like the following one. In the Cash Flow column, use OA to designate operating activity, IA for investment activity. FA for financing activity, and NC for net change in cash. The first event is recorded 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. d. Determine the amount of the cash flow from operating activities that would appear in the Year 1 statement of cash flows Answer is not complete. Complete this question by entering your answers in the tabs below. Accounting Equation Reg A Reg to D Show the effects of the events on the financial statements using a horizontal financial statement model like the following one. In the cash flow column, use O to designate operating LA for investment activity, FA for financing activity, and NC for net change in cash. The first event is recorded as an example, unter any decreases to account balance with a minus sig cells in the Statement of Cash Flows column may require an input leave celis blank there is no corresponding input needed.) 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. d. Determine the amount of the cash flow from operating activities that would appear in the Year 1 statement of cash flows * Answer is not complete. Complete this question by entering your answers in the tabs below. Accounting Equation Req A Req BtoD Show the effects of the events on the financial statements using a horizontal Financial statements model like the following one. In the Cash Flow column, use OA to designate opera IA for investment activity, FA for financing activity, and NC for not change in cash. The first event is recorded as an example. (Enter any decreases to account balances with a minus cells in the statement of Cash Flows column may require an input - leave a blank if there is no corresponding input needed.) THE CONTAINERS INC. Horizontal Statements Model for Balance Sheet Income Statement Statement of Cash Flows Stockholders Equity Expense - Cash Stock 42,000 25,000 25,000 + + 25,000 (18.000) 25,000 (18,000) 42000 FA 25,000 OA (18.000) OA 10.000FA (16,000 10.000 22.000 x 22.000 22.000 : (1,000) 58,000 22.000 (1.000) 28,000 x (1,000) 58,000 Totals 22.000 10,000 + 42000 + 47.000 x 18,000 29000 Reg A > Cash. The first event is recorded as an example. a. Would the accounts receivable account appear in the assets, liabilities, or stockholders' equity section of the December 3 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. d. Determine the amount of the cash flow from operating activities that would appear in the Year 1 statement of cash flows. Answer is not complete. Complete this question by entering your answers in the tabs below. Accounting Equation Req A Req B to D Would the accounts receivable account appear in the assets, liabilities, or stockholders' equity section of the December 31, Year 1, balance sheet? Would the accounts receivable account appear in the assets, liabilities, or stockholders' equity section of the December 31. Year 1, balance sheet? Stockholders' equity Prev 1 of 3 : N b. Determine the balance of the accounts receivable account that would appear on the December 31. Year 1. balance c. Determine the amount of net income that would appear in the Year 1 income statement. d. Determine the amount of the cash flow from operating activities that would appear in the Year 1 statement of cash x Answer is not complete. Complete this question by entering your answers in the tabs below. Accounting Equation Rega Req B to D Determine the balance of the accounts receivable account that would appear on the December 31, Year 1, balance sheet Determine the amount of net income that would appear in the Year 1 income statement. Determine the amount of the cash flow from operating activities that would appear in the Year 1 statement of cash flows $ Accounts receivable Net income Net cash flow 22,000 29,000 58 000
