Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Listed below are several transactions that took place during the first two years of operations for the law im Tree Year 1 $176,000 157,000 Year

image text in transcribed
image text in transcribed
Listed below are several transactions that took place during the first two years of operations for the law im Tree Year 1 $176,000 157,000 Year 2 $226,000 187,000 Amounts billed to clients for services rendered Cash collected from clients Cash disbursements Salaries paid to employees for services rendered during the year Utilities Purchase of insurance policy 87,880 28,580 59,100 97,000 37,000 In addition, you learn that the company incurred utility costs of $33,500 in year 1, that there were no liabilities at the end of year 2, no anticipated bad debts on receivables, and that the insurance policy covers a three-year period. Required: 1. & 3. Calculate the net operating cash flow for years 1 and 2 and determine the amount of receivables from clients that the company would show in its year 1 and year 2 balance sheets prepared according to the accrual accounting model. 2. Prepare an income statement for each year according to the accrual accounting model. Complete this question by entering your answers in the tabs below. Req 1 and 3 Req 2 Calculate the net operating cash flow for years 1 and 2 and determine the amount of receivables from clients that the company would show in its year 1 and year 2 balance sheets prepared according to the accrual accounting model. (Net cash outflows should be indicated by a minus sign.) 1. Net operating cash flow 3. Receivables $ S Year 1 (17,600) S 157,000S Year 2 53,000 187,000 In addition, you learn that the company incurred utility anticipated bad debts on receivables, and that the ins Required: 1. & 3. Calculate the net operating cash flow for years would show in its year 1 and year 2 balance sheets pre 2. Prepare an income statement for each year accordi Complete this question by entering your answers Reg 1 and 3 Reg 2 Prepare an income statement for each year according to Year 2 226,000 $ PETE, PETE, AND ROY Income Statements Year 1 Revenues $ 176,000 Expenses Salaries (87,000) Utilities (33,500) Insurance (19,700) Net income (loss) $ 35,800 (97,000) (32,000) (19,700) 77,300 $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Myth Of Measurement Inspection Audit Targets And The Public Sector

Authors: Nick Frost

1st Edition

1529732662, 978-1529732665

More Books

Students also viewed these Accounting questions

Question

Define policy making?

Answered: 1 week ago

Question

Define co-ordination?

Answered: 1 week ago

Question

What are the role of supervisors ?

Answered: 1 week ago

Question

Compare levels of resolution in conflict outcomes?

Answered: 1 week ago

Question

Strategies for Managing Conflict Conflict Outcomes?

Answered: 1 week ago