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 firm of Pete. Pete, and Roy. Year

image text in transcribed
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 firm of Pete. Pete, and Roy. Year 1 Year 2 $176,000 $226,000 157,000 187,000 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 87,000 28,500 59,100 97,000 37,000 In addition, you learn that the firm 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 firm 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. Rea 1 and 3 Reg 2 Calculate the net operating cash flow for years 1 and 2 and determine the amount of receivables from clients that the firm 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.) Year 1 Year 2 Required: 1.& 3. Calculate the net operating cash flow for years 1 and 2 and determine the amount of receivables from clients that the firm 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 Reg 2 ences Calculate the net operating cash flow for years 1 and 2 and determine the amount of receivables from clients that the firm 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.) Year 1 Year 2 Net operating cash flow 3 Receivables $ 19,000 $ 39,0 Ru Reg 2 > 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 firm 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 Reg 2 Prepare an income statement for each year according to the accrual accounting model, Year 2 226,000 PETE, PETE, AND ROY Income Statements Year 1 Revenues $ 176.000 s Exponses Salanes 87 000 Utilities 30,500 Insurance 19,700 Not income (loss) 97 000 32.000 19,700

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

Step: 3

blur-text-image

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

Accounting The Ultimate Guide To Accounting Principles

Authors: Greg Shields

1st Edition

1722964839, 978-1722964832

More Books

Students also viewed these Accounting questions