Rosie Dry Cleaning was started on January 1, Year 1. It experienced the following events during its first two years of operation Events Affecting Year 1 1. Provided $31,870 of cleaning services on account 2. Collected $25.496 cash from accounts receivable. 3. Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be percent of the cleaning revenue on account Events Affecting Year 2 1. Wrote off a $239 account receivable that was determined to be uncollectible 2. Provided $37192 of cleaning services on account 3. Collected $32,915 cash from accounts receivable. 4. Adjusted the accounting records to reflect the estimate that encollectible accounts expense would be 1 percent of the cleaning revenue on account Required a. Organize the transaction data in accounts under an accounting equation for each year. b. Determine the following amounts: (1) Net income for Year 1 (2) Net cash flow from operating activities for Year 1 (3) Balance of accounts receivable at the end of Year 1. (4) Net realizable value of accounts receivable at the end of Year 1 c. Determine the following amounts: (1) Net income for Year 2 (2) Net cash flow from operating activities for Year 2 (3) Balance of accounts receivable at the end of Year 2 (4) Not realizable value of accounts receivable at the end of Year 2 Net income To Tear 2. (2) Net cash flow from operating activities for Year 2 (3) Balance of accounts receivable at the end of Year 2. (4) Net realizable value of accounts receivable at the end of Year 2 Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 ReqB Reqc Organize the transaction data in accounts under an accounting equation for Year 1. (Enter any decreases to account balances with a minus sign. Not all cells require input.) ROSIE DRY CLEANING Accounting Equation for Yeact Balance Sheet Assets Liabilities Equity NRV Retained Accounts Earnings Receivable Event Account Titles for Retained Earnings Cash + 1. 2. 3. ++++ + Bal. 0 0 0 Req A2 > Complete this question by entering your answers in the tabs below. Req A1 Reg A2 Reg B Reqc Organize the transaction data in accounts under an accounting equation for Year 2. (Enter any decreases to account balances with a minus sign. Not all cells require input.) ROSIE DRY CLEANING Accounting Equation for Year 2 Balance Sheet Assets Liabilities Equity NRV Accounts + Retained Receivable Earnings Event Account Titles for Retained Earnings Cash Bal. ++ 1. GAN + 3 4. Bal. + + 0 + 0 + 0 ( Req A1 Req> Complete this question by entering your answers in the tabs below. Req A1 Reg A2 ReqB Reg C Determine the following amounts for the Year 1 accounting period. (Round your answers to nearest whole dollar amount.) Net Income Net cash flow from operating activities Balance of accounts receivable Net realizable value of accounts receivable (4) Net realizable value of accounts receivable at the end of Year 2. Complete this question by entering your answers in the tabs below. Reg A1 Req AZ Req B Reqc Determine the following amounts for the Year 2 accounting period. (Round your answers to Net income Net cash flow from operating activities Balance of accounts receivable Net realizable value of accounts receivable
