I had to make pictures small. You may need to zoom in on them to see but they are clear pictures.
The following transactions apply to Walnut Enterprises for Year 1, its first year of operations: 1. Received $50,000 cash from the issue of a short-term note with a 6 percent interest rate and a one-year maturity. The note was made on April 1, Year 1. 2. Received $130,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 6 percent. 3. Paid $62,000 cash for other operating expenses during the year. 4. Paid the sales tax due on $110,000 of the service revenue for the year. Sales tax on the balance of the revenue is not due until Year 2. 5. Recognized the accrued interest at December 31 , Year 1. The following transactions apply to Walnut Enterprises for Year 2: 1. Paid the balance of the sales tax due for Year 1. 2. Received $201,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 6 percent. 3. Repaid the principal of the note and applicable interest on April 1, Year 2. 4. Paid $102,500 of other operating expenses during the year. 5. Paid the sales tax due on $185,000 of the service revenue. The sales tax on the balance of the revenue is not due until Year 3. Required a. Organize the transaction data in accounts under an accounting equation. b-1. Prepare an income statement for Year 1 and Year 2. b-2. Prepare a statement of changes in stockholders' equity for Year 1 and Year 2. b-3. Prepare a balance sheet for Year 1 and Year 2. b-4. Prepare a statement of cash flows for Year 1 and Year 2. Organize the transaction data in accounts under an accounting equation. (Do not round intermediate calculations. Enter any decreases to account balances with a minus sign. Leave the cell blank if there is no effect on the "Account Titles for Retained Earnings". Not all cells will require entry.) b-4. Prepare a statement of cash flows for Year 1 and Year 2. Complete this question by entering your answers in the tabs below. Prepare the income statement for Year 1. (Do not round intermediate calculations.) b-4. Prepare a statement of cash flows for Year 1 and Year 2. Complete this question by entering your answers in the tabs below. Prepare the income statement for Year 2. (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Prepare the statement of changes in stockholders' equity for Year 1. Complete this question by entering your answers in the tabs below. Prepare the statement of changes in stockholders' equity for Year 2. Prepare the balance sheet for Year 1 . Prepare the balance sheet for Year 2 . Prepare the statement of cash flows for Year 1. (Cash outflows should be indicated with a minus sign.) Prepare the statement of cash flows for Year 2. (Cash outflows should be indicated with a minus sign.) The following transactions apply to Walnut Enterprises for Year 1, its first year of operations: 1. Received $50,000 cash from the issue of a short-term note with a 6 percent interest rate and a one-year maturity. The note was made on April 1, Year 1. 2. Received $130,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 6 percent. 3. Paid $62,000 cash for other operating expenses during the year. 4. Paid the sales tax due on $110,000 of the service revenue for the year. Sales tax on the balance of the revenue is not due until Year 2. 5. Recognized the accrued interest at December 31 , Year 1. The following transactions apply to Walnut Enterprises for Year 2: 1. Paid the balance of the sales tax due for Year 1. 2. Received $201,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 6 percent. 3. Repaid the principal of the note and applicable interest on April 1, Year 2. 4. Paid $102,500 of other operating expenses during the year. 5. Paid the sales tax due on $185,000 of the service revenue. The sales tax on the balance of the revenue is not due until Year 3. Required a. Organize the transaction data in accounts under an accounting equation. b-1. Prepare an income statement for Year 1 and Year 2. b-2. Prepare a statement of changes in stockholders' equity for Year 1 and Year 2. b-3. Prepare a balance sheet for Year 1 and Year 2. b-4. Prepare a statement of cash flows for Year 1 and Year 2. Organize the transaction data in accounts under an accounting equation. (Do not round intermediate calculations. Enter any decreases to account balances with a minus sign. Leave the cell blank if there is no effect on the "Account Titles for Retained Earnings". Not all cells will require entry.) b-4. Prepare a statement of cash flows for Year 1 and Year 2. Complete this question by entering your answers in the tabs below. Prepare the income statement for Year 1. (Do not round intermediate calculations.) b-4. Prepare a statement of cash flows for Year 1 and Year 2. Complete this question by entering your answers in the tabs below. Prepare the income statement for Year 2. (Do not round intermediate calculations.) Complete this question by entering your answers in the tabs below. Prepare the statement of changes in stockholders' equity for Year 1. Complete this question by entering your answers in the tabs below. Prepare the statement of changes in stockholders' equity for Year 2. Prepare the balance sheet for Year 1 . Prepare the balance sheet for Year 2 . Prepare the statement of cash flows for Year 1. (Cash outflows should be indicated with a minus sign.) Prepare the statement of cash flows for Year 2. (Cash outflows should be indicated with a minus sign.)
