Golden Manufacturing Company started operations by acquiring $103,000 cash from the issue of common stock. On January 1, Year 1, the company purchased equipment that cost $93,000 cash, had an expected useful life of five years, and had an estimated salvage value of $9,300. Golden Manufacturing earned $93,350 and $66,780 of cash revenue during Year 1 and Year 2, respectively. Golden Manufacturing uses double-declining-balance depreciation.

Required

1. Record the above transactions in a horizontal statements model.

1. b-1. Prepare income statements for Year 1 and Year 2.

1. b-2. Prepare balance sheets for Year 1 and Year 2.

2. b-3. Prepare statements of cash flows for Year 1 and Year 2

3. .

Income Statement GOLDEN MANUFACTURING COMPANY Horizontal Statements Model Balance Sheet Assets Equity BV Common + Revenue Retained Equipment Stock Earnings Statement of Cash Flows Event Expense = Net Income Cash + Year 1 Issue stock 103,000 + = 103,000 + (93,000)| + 93,350 + 93,000/= + 103,000 FA (93,000) IA 93,350 OA + 93,350 93,350 - = 93,350 Purchase equipment Revenue Depreciation expense Balance + + 103,350 + 93,000 = 103,000 + 93,350 93,350 0 = 93,350 103,350 NC 103,350 + + = Year 2 Beg. bal. Revenue Depreciation expense End. bal. + = + + + 103,350 + 0 = 0 + 0 0- 0 = 0 O INC