Exercise 3-9A (Algo) Recording receivables and identifying their effect on financial statements LO 3-1 Davos Company performed services on account for $52.500 in Year 1 . Davos collected $42,000 cash from accounts recelvable during Year 1, and the remaining $10,500 was collected in cash during Year 2. Required 0. e. \& f. Record the Year 1 transactions in T-accounts and close the Year 1 Service Revenue account to the Retalned Earnings account. Record the Year 2 cash collection in the appropriate T-accounts: b. \& g. Shiow the Year 1 and Year 2 transactions in a horizontal statements model. c. Determine the amount of revenue Davos would report on the Year 1 income statement. d. Determine the amount of cash flow from operating activitles Davos would report on the Year 1 statement of cash flows. h. Assuming no other transactions occur in Year 2 . determine the amount of net income and the net cash flow from operating activities for Yeat 2 : Complete this question by entering your answers in the tabs below. initials on to designate operating activity, FA to designate finance activity, IA to designate investing activity and NC for net change in cash. Not all cells req \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{17}{|c|}{ DAVOS COMPANY } \\ \hline \multicolumn{17}{|c|}{ Effect of Transactions on the Financial Statements for Year 1 and Year 2} \\ \hline \multirow{3}{*}{ No. } & \multicolumn{9}{|c|}{ Balance Sheet } & \multirow{2}{*}{\multicolumn{5}{|c|}{ Income statement }} & \multirow{3}{*}{\multicolumn{2}{|c|}{\begin{tabular}{c} statement of Cash \\ Flows \end{tabular}}} \\ \hline & \multicolumn{3}{|c|}{ Assets } & \multirow{2}{*}{=} & \multirow[t]{2}{*}{ Liabilities } & \multirow{2}{*}{+} & \multicolumn{3}{|c|}{ stockholders' Equity } & & & & & & & \\ \hline & Cash & + & \begin{tabular}{l} Accounts \\ Receivple \end{tabular} & & & & \begin{tabular}{l} Common \\ stock \end{tabular} & + & \begin{tabular}{l} Retained \\ Earnings \end{tabular} & Revenue & - & Expense & & Net Income & & \\ \hline Year 1 & & & & & & & & & & & & & & & & \\ \hline 1. & & 1 & & = & & . & & +1 & & & - & & = & & & 3 \\ \hline 2. & & +5 & & = & & + & & + & & & - & & = & & & 7 \\ \hline Ba! & 0 & . & 0 & = & 0 & . & 0 & + & 0 & 0 & = & 0 & = & 0 & 07 & \\ \hline Year 2 & & & & & & & & & & & & & 4 & & & \\ \hline 3. & & 1 & & 1= & & +1 & & 1. & & & - & & = & & & 7 \\ \hline Bal & 0 & + & 0 & = & 0 & + & 0 & + & 0 & 0 & 1 & 0 & = & 0 & of & \\ \hline \end{tabular} Req A E and F RegC