Patel Service Company 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 Company earned $31,850 of cash revenue and $7,963 of revenue on account Cash operating expenses were $22,572 After numerous attempts to collect a $220 account receivable from Sam Stephens, the account was determined to be uncollectible in Year 1 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 horizontal statements model In the Statement of Cash Flows column, indicate whether the item is an operational activity (OA), investing activity (IA), or financing activity (FA) Use NC for the net change in cash Leave blank to indicate that an element is not affected by the event What amount of net income did Patel Service Company report on the Year 1 income statement Prepare the general journal entries for the following four accounting events a Record cash received for service revenue b Record services on account c Record cash paid for operating expenses d Record entry for uncollectible accounts expenses 1 B On 1 May, Year 1, Benzs Sandwich Shop loaned $14,000 to Mark Henry for one year at 10 percent interest Required What is Benzs interest income for Year 1 What is Benzs total amount of receivables at December 31, Year 1 How will the loan and interest be reported on Benzs Year 1 statement of cash flows What is Benzs interest income for Year 2 What is the total amount of cash that Benzs will collect in Year 2 from Mark Henry How will the loan and interest be reported on Benzs Year 2 statement of cash flows What is the total amount of interest that Benzs earned on the loan to Mark Henry 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 In the Statement of Cash Flows column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA) Use NC for change in cash Leave blank to indicate that an element is not affected by the event (Enter any decreases to account balances and cash outflows with a minus sign ) What amount of net income did Patel Service Company report on the Year 1 income statement (ror all requirements, round your answers to the nearest dollar amount )

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Patel Service Company does make a few sales on account but is mostly a cash business. Consequently, it uses the direct write-off method to account

Patel Service Company 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 Company earned $31,850 of cash revenue and $7,963 of revenue on account. Cash operating expenses were $22,572. After numerous attempts to collect a $220 account receivable from Sam Stephens, the account was determined to be uncollectible in Year 1. 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 horizontal statements model. In the Statement of Cash Flows column, indicate whether the item is an operational activity (OA), investing activity (IA), or financing activity (FA). Use "NC" for the net change in cash. Leave blank to indicate that an element is not affected by the event.
What amount of net income did Patel Service Company report on the Year 1 income statement?
Prepare the general journal entries for the following four accounting events.

a.Record cash received for service revenue.

b.Record services on account.

c.Record cash paid for operating expenses.

d.Record entry for uncollectible accounts expenses

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1-B

On 1 May, Year 1, Benzs Sandwich Shop loaned $14,000 to Mark Henry for one year at 10 percent interest.

Required

What is Benzs interest income for Year 1?
What is Benzs total amount of receivables at December 31, Year 1?
How will the loan and interest be reported on Benzs Year 1 statement of cash flows?
What is Benzs interest income for Year 2?
What is the total amount of cash that Benzs will collect in Year 2 from Mark Henry?
How will the loan and interest be reported on Benzs Year 2 statement of cash flows?
What is the total amount of interest that Benzs earned on the loan to Mark Henry?

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. In the Statement of Cash Flows column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). Use "NC" for change in cash. Leave blank to indicate that an element is not affected by the event. (Enter any decreases to account balances and cash outflows with a minus sign.) What amount of net income did Patel Service Company report on the Year 1 income statement? (ror all requirements, round your answers to the nearest dollar amount.)