Exercise 3-11B

W caps lock A S shift Z 193 The Double-Entry Accounting System d. Determine the amount of net income on the Year 1 income statement. What is the amount of net cash flow from operating activities for Year 1? e. What amount of unearned revenue would Jones report on the December 31, Year 1, balance sheet? LO 3-1 Exercise 3-12B Using a T-account to determine cash flow from operating activities Barnes Inc. began the accounting period with a $105,000 debit balance in its Accounts Receivable account. During the accounting period, Barnes earned revenue on account of $448,000. The ending Accounts Receivable balance was $86,000. Required Based on this information alone, determine the amount of cash inflow from operating activities during the accounting period. (Hint: Use a T-account for Accounts Receivable. Enter the debits and credits for the given events, and solve for the missing amount.) LO 3-1 2 Exercise 3-13B Using a T-account to determine cash flow from operating activities Hun Company began the accounting period with a $36,000 credit balance in its Accounts Payable ac- count. During the accounting period, Hun incurred expenses on account of $108,000. The ending Accounts Payable balance was $48,000. t Required Rund on thio information, determine the amount of cash outflow for expenses during the accounting Payable. Enter the debits and credits for the given events, c. Show the above transactions in a horizontal statements model like the following one: Assets Liab. + Equity Rev. Exp. Net Inc. Cash Flow Accts. Rec. + Supplies Accts. Pay Ret. Earn. = + d. Explain why the amounts of net income and net cash flow from operating activities differ. e. Record and post the required closing entries, and prepare a post-closing trial balance. Exercise 3-11B Recording unearned revenue and identifying its effect on financial statements James Jones received a $90,000 cash advance on March 1, Year 1, for legal services to be performed in the future. Services were to be provided for a one-year term beginning March 1, Year 1. Required a. Record the March 1 cash receipt in T-accounts. b. Record in T-accounts the adjustment required as of December 31, Year 1. c. Show the preceding transaction and related adjustment in a horizontal statements model like the following one: Assets Liab. + Equity Rev. Exp. Net Inc. Cash Flow