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I need help filling in some entries on the financial statement Rosie Dry Cleaning was started on January 1, Year 1. It experienced the following
I need help filling in some entries on the financial statement
Rosie Dry Cleaning was started on January 1, Year 1. It experienced the following events during its first two years of operation: Events Affecting Year 1 1. Provided $45,000 of cleaning services on account. 2. Collected $39,000 cash from accounts receivable. 3. Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be 1 percent of the cleaning revenue on account. Events Affecting Year 2 1. Wrote off a $300 account receivable that was determined to be uncollectible. 2. Provided $62,000 of cleaning services on account. 3. Collected $61.000 cash from accounts receivable. 4. Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be 1 percent of the cleaning revenue on account. Required a. Organize the transaction data in accounts under an accounting equation for each year. b. Determine the following amounts: 1. (1) Net income for Year 1. 2. (2) Net cash flow from operating activities for Year 1. 3. (3) Balance of accounts receivable at the end of Year 1. 4. (4) Net realizable value of accounts receivable at the end of Year 1. Required a. Organize the transaction data in accounts under an accounting equation for each year. b. Determine the following amounts: 1. (1) Net income for Year 1. 2. (2) Net cash flow from operating activities for Year 1. 3. (3) Balance of accounts receivable at the end of Year 1. 4. (4) Net realizable value of accounts receivable at the end of Year 1. c. Determine the following amounts: 1. (1) Net income for Year 2. 2. (2) Net cash flow from operating activities for Year 2. 3. (3) Balance of accounts receivable at the end of Year 2. 4. (4) Net realizable value of accounts receivable at the end of Year 2. with a minus sign. If there is no effect on the Accounts Titles for Retained Earnings, leave require entry.) ROSIE DRY CLEANING Event Accounting Equation for the Year 1 Balance Sheet Assets Equity Accounts Titles for Retained Earnings NRV Accounts Retained Cash Receivable Earnings 45.000 45,000 Service revenue 39.000 + (39.000) (450) [Uncollectible accounts expense 39.000 + 6.000 44.550 1 Bal. Reg A2) require entry.) ROSIE DRY CLEANING Accounting Equation for the Year 2 Balance Sheet Event Assets Accounts Titles for Retained Earnings Cash NRV Accounts Receivable Equity Retained Earnings 44,550 Bal. 39.000 + 0 + 0 2. 62.000 62,000 Service revenue ILITICIANI1 61.000 + (61,000) 0 [Uncollectible accounts expense Bal. 100.000 + 1.000 106.550Step by Step Solution
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