Patel Service Co does make a few sales on account but is mostly a cash business. Consequently, it uses the direct write-off method to account for uncollectible accounts. During Year 1. Patel Service Co. earned $35,000 of cash revenue and $4,500 of revenue on account Cash operating expenses were $19,000. After numerous attempts to collect a $120 account receivable from Sam Stephens, the account was determined to be uncollectible in Year 1. Required 1. Show the effects of (1) cash revenue, (2) revenue on account, (3) cash expenses, and (4) write off of the uncollectible account on the financial statements using a horizontal statements model like the one shown here. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (1A), or financing activity (FA) Use NA to indicate that an element is not affected by the b. What amount of net income did Patel Service Co, report on the Year income statement? c. Prepare the general journal entries for the four accounting events listed in Requirement a Complete this question by entering your answers in the tabs below. Required A Required Required Show the effects of (1) cash revenue, (2) revenue on account, (3) cash expenses, and (4) write off of the uncollectible account on the financial statements using a horu statements model like the one shown here in the Cash Flow column, indicate whether the item is an operating activity (OA), Investing activity (IA), or financing activity NA to indicate that an element is not affected by the event. (Enter any decreases to account balances with a minus sign.) Sh Balance Sheet PATEL SERVICE CO. Horizontal Statements Model Income Statement Stockholders Revenge Expense = Net Income Equity Assets Liabilities Statement of Cash Flow Cash Accounts Receivable 1 Check my work financial statements using a horizontal statements model like the one shown here. In the Cash Flow column, indicate whether the item Is an operating activity (OA), investing activity (1A), or financing activity (FA). Use Na to indicate that an element is not affected by the event b. What amount of net income did Patel Service Co report on the Year 1 income statement? c. Prepare the general journal entries for the four accounting events listed in Requirement a Complete this question by entering your answers in the tabs below. Required A Required B Required Show the effects of (1) cash revenue, (2) revenue on account, (3) cash expenses, and (4) write off of the uncollectible account on the financial statements using a horta statements model like the one shown here. In the Cash Flow column, indicate whether the item is an operating activity (OA), Investing activity (IA), or financing activity NA to indicate that an element is not affected by the event. (Enter any decreases to account balances with a minus sign.) sh Balance Sheet PATEL SERVICE CO. Horizontal Statements Model Income Statement Stockholders Revenue Expense Equity = Net Income Assets = Liabilities - Statement of Cash Flow Event Cash Accounts Receivable 1 2 3 4 ## +1 Patel Service Co. does make a few sales on account but is mostly a cash business. Consequently, it uses the direct write-off method to account for uncollectible accounts. During Year 1 Patel Service Co, earned $35,000 of cash revenue and $4,500 of revenue on account Cash operating expenses were $19,000. After numerous attempts to collect a $120 account receivable from Sam Stephens, the account was determined to be uncollectible in Year 1 Required a. Show the effects of (1) cash revenue (2) revenue on account, (3) cash expenses, and (4) write off of the uncollectible account on the financial statements using a horizontal statements model like the one shown here. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). Use NA to indicate that an element is not affected by the b. What amount of net income did Patel Service Co. report on the Year 1 income statement? c. Prepare the general journal entries for the four accounting events listed in Requirement a event Complete this question by entering your answers in the tabs below. Required A Required B Required What amount of net income did Patel Service Co. report on the Year 1 Income statement? Net Income Patel Service Co does make a few sales on account but is mostly a cash business. Consequently, it uses the direct write-off method to account for uncollectible accounts. During Year 1, Patel Service Co. earned $35,000 of cash revenue and $4,500 of revenue on account. Cash operating expenses were $19,000. After numerous attempts to collect a $120 account receivable from Sam Stephens. the account was determined to be uncollectible in Year 1. Required a. Show the effects of (1) cash revenue, (2) revenue on account, (3) cash expenses, and (4) write off of the uncollectible account on the financial statements using a horizontal statements model like the one shown here. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). Use NA to indicate that an element is not affected by the b. What amount of net income did Patel Service Co. report on the Year 1 income statement? c. Prepare the general journal entries for the four accounting events listed in Requirement a. event Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare the general Journal entries for the four accounting events listed in Requirement a. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet
