Exercise 8-8A Effect of double-declining-balance depreciation on financial statements LO 8-3 Golden Manufacturing Company started operations by acquiring $147,100 cash from the issue of common stock. On January 1, Year 1, the company purchased equipment that cost $147,100 cash, had an expected useful life of six years, and had an estimated salvage value of $29.420. Golden Manufacturing earned $91,930 and $63,900 of cash revenue during Year 1 and Year 2, respectively. Golden Manufacturing uses double-declining-balance depreciation. Book Required: Prepare income statements, balance sheets, and statements of cash flows for Year 1 and Year 2. Use a vertical statements format. (Hint Record the events in T-accounts prior to preparing the statements.) (Do not round intermediate calculations. Round your final answers to the nearest whole dollar. Amounts to be deducted and net loss should be indicated with a minus sign.) Print GOLDEN MANUFACTURING COMPANY Financial Statements ferences Year 1 Year 2 Income statements $ $ 63,900 Sales revenue Depreciation expense Net income Balance sheets 91,930 29,420 62,510 $ $ 63,900 Assets Cash 147,100 Equipment Accumulated depreciation $ 147,100 $ 0 Total assets Stockholders' equity Common stock $ 147,100 ob i Year 1 Year 2 Income statements Sales revenue $ 91,930 $ 63,900 Depreciation expense 29,420 Net income $ 62,510 $ 63,900 Balance sheets Assets Cash Equipment Accumulated depreciation 147, 100 Total assets $ 147,100 $ 0 Stockholders' equity Common stock $ 147,100 Retained earnings $ 147,100 $ 0 Total stockholders' equity Statements of cash flows Cash flows from operating activities Inflow from customers Cash flows from investing activities: Outflow to purchase equipment Cash flows from financing activities Inflow from stock issue Net change in cash Plus: Beginning cash balance Ending cash balance 0 0 $ 0 $ 0 o search