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Im stuck on finding depreciation expense and the other boxes im not understanding. Exercise 8-8A Effect of double-declining-balance depreciation on financial statements LO 8-3 Golden
Im stuck on finding depreciation expense and the other boxes im not understanding.
Exercise 8-8A Effect of double-declining-balance depreciation on financial statements LO 8-3 Golden Manufacturing Company started operations by acquiring $92,200 cash from the issue of common stock. On January 1, Year 1, the company purchased equipment that cost $92,200 cash, had an expected useful life of six years, and had an estimated salvage value of $18,440. Golden Manufacturing earned $98,010 and $62,300 of cash revenue during Year 1 and Year 2, respectively. Golden Manufacturing uses double-declining-balance depreciation. Required: Prepare income statements, balance sheets, and statements of cash flows for Year 1 and Year 2. Use a vertical statements format. (Hint: Record the events in T-accounts prior to preparing the statements.) (Do not round intermediate calculations. Round your final answers to the nearest whole dollar. Amounts to be deducted and net loss should be indicated with a minus sign.) GOLDEN MANUFACTURING COMPANY Financial Statements Year 1 Year 2 Income statements $ 62,300 Sales revenue Depreciation expense 98,010 $ 12,293 85,717 $ $ 62,300 Balance sheets $ Assets Cash Equipment Accumulated depreciation 98,010 92,200 $ 190,210 $ 0 Total assets Stockholders' equity Common stock Retained earnings 92,200 Cash flows from investing activities: Outflow to purchase equipment Cash flows from financing activities: Inflow from stock issue 0 0 Net change in cash Plus: Beginning cash balance Ending cash balance $ 0 $ 0 X Answer is not complete. GOLDEN MANUFACTURING COMPANY Financial Statements Year 1 Year 2 Income statements Sales revenue Depreciation expense $ 98,010 $ 62,300 12,293 X $ 85,717 $ 62,300 Balance sheets Assets Cash $ 98,010 92,200 Equipment Accumulated depreciation Total assets $ 190,210 $ 0 Stockholders' equity Common stock Retained earnings $ 92,200 $ 92,200 $ 0 Total stockholders' equity Statements of cash flows Cash flows from operating activities: Inflow from customers Cash flows from investing activities: Outflow to purchase equipment Cash flows from financing activitiesStep by Step Solution
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