Question
Golden Manufacturing Company started operations by acquiring $111,000 cash from the issue of common stock. On January 1, 2018, the company purchased equipment that cost
Golden Manufacturing Company started operations by acquiring $111,000 cash from the issue of common stock. On January 1, 2018, the company purchased equipment that cost $101,000 cash, had an expected useful life of five years, and had an estimated salvage value of $10,100. Golden Manufacturing earned $99,310 and $69,480 of cash revenue during 2018 and 2019, respectively. Golden Manufacturing uses double-declining-balance depreciation.
Required
Record the purchase in a horizontal statements model.
b-1. Prepare an income statements for 2018 and 2019. Use a vertical statements format.
b-2. Prepare a balance sheets for 2018 and 2019. Use a vertical statements format.
b-3. Prepare a statements of cash flows for 2018 and 2019. Use a vertical statements format.
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Typewritten answers only, please. No handwritten answers. Thank you.
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Typewritten answers only, please. No handwritten answers. Thank you.
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Enterprise Compliance Risk Management An Essential Toolkit For Banks And Financial Services
Authors: Saloni Ramakrishna
1st Edition
1118550285, 978-1118550281
