Golden Manufacturing Company started operations by acquiring $94,000 cash from the issue of common stock. On January 1, Year 1, the company purchased equipment that cost $84,000 cash, had an expected useful life of five years, and had an estimated salvage value of $8,400. Golden Manufacturing earned $95,740 and $68,070 of cash revenue during Year 1 and Year 2, respectively. Golden Manufacturing uses double-declining-balance depreciation. Required a. Record the above 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. Req A Reg B1 Inc Stmt Reg B2 Bal Sheet Req B3 Stmt Cash Record the above transactions in a horizontal statements model. (In the Cash Flow column, indicate whether the item is an operating activity (OA), an investing activity (IA), a financing activity (FA) and net change in cash (NC). If the element is not affected by the event, leave the cell blank. Enter any decreases to account balances and cash outflows with minus sign. Do not round intermediate calculations. Round the final answers to nearest dollar amount. Not all cells will require entry.) Show less Income Statement GOLDEN MANUFACTURING COMPANY Horizontal Statements Model Balance Sheet Assets Equity BV Common Retained Revenue Equipment Stock Earnings Statement of Cash Flows Event Expense = Net Income Cash Year 1 Issue stock + = + Purchase equipment + + - + = + + = + 0 + 0 = 0 + 0 0 0 = 0 0 Revenue Depreciation expense Balance Year 2 Beg. bal. Revenue Depreciation expense End. bal. + = + + = + = + 0 + 0 = 01 + 0 0 - 0 = 0 0 0 Req A Req B1 Inc Req B2 Bal Req B3 Stmt Stmt Sheet Cash Prepare income statements for Year 1 and Year 2. (Do not round intermediate calculations. Round the final answers to nearest dollar amount.) GOLDEN MANUFACTURING COMPANY Income Statements For the Year Ended December 31 Year 1 Year 2 Req A Req B1 Inc Stmt Req B2 Bal Sheet Req B3 Stmt Cash Prepare balance sheets for Year 1 and Year 2. (Do not round intermediate calculations. dollar amount.) GOLDEN MANUFACTURING COMPANY Balance Sheets As of December 31 Year 1 Year 2 Assets $ 0 $ 0 Total Assets Stockholders' equity Total stockholders' equity $ 0 $ 0 Req A Req B1 Inc Stmt Req B2 Bal Sheet Reg B3 Stmt Cash Prepare statements of cash flows for Year 1 and Year 2. (Cash outflows should intermediate calculations. Round the final answers to nearest dollar amount.) GOLDEN MANUFACTURING COMPANY Statements of Cash Flows For the Year Ended December 31 Year 1 Year 2 Cash flows from operating activities: Cash flows from investing activities: Cash flows from financing activities: Net change in cash Ending cash balance 0
