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Golden Manufacturing Company started operations by acquiring $130,000 cash from the issue of common stock. On January 1, Year 1, the company purchased equipment
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Golden Manufacturing Company started operations by acquiring $130,000 cash from the issue of common stock. On January 1, Year 1, the company purchased equipment that cost $120,000 cash, had an expected useful life of five years, and had an estimated salvage value of $12,000. Golden Manufacturing earned $88,190 and $63,810 of cash revenue during Year 1 and Year 2, respectively. Golden Manufacturing uses double-declining-balance depreciation Required a. Record the transactions in a horizontal statements model. b-1. Prepare income statements for Year 1 and Year 2. b-2. Prepare balance sheets for Year 1 and Year 2. b-3. Prepare statements of cash flows for Year 1 and Year 2. Complete this question by entering your answers in the tabs below. Reg A Req 1 Inc Stmt Req 82 Bal Sheet Reg 83 Stmt Cash Flows Record the transactions in a horizontal statements model. (In the Statement of Cash Flows column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, and NC for net change in cash. Enter any decreases to account balances and cash outflows with a minus sign. Not all cells require input. Do not round termediate calculations Round your final answers to the nearest whole dollar.) GOLDEN MANUFACTURING COMPANY Horizontal Statements Model Balance Sheet Income Statement Assets Stockholder's Equity Revenue Event Expense Net Income Statement of Cash Cash Book Value of Equipment Flows Common Stock Retained Earnings Year 1 Issue stock 130,000+ . Purchase equipment (120,000)+ Revenue 10.000+ Depreciation expens Balance 20,000+ 0 Year 2 Beg bal . Revenue + Depreciation expense . End bal 0+ 0+ 0 0 A 0- 0 01 Req B1 Inc Stmt > 0 0 Show less
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