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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

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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 $32,890 of cleaning services on account. 2. Collected $26,312 tash from accounts receivable. 3. Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be 1 percent of the cleaning revenue on account Events Affecting Year 2 1. Wrote off a $247 account receivable that was determined to be uncollectible, 2. Provided $38,383 of cleaning services on account. 3. Collected $33,969 cash from accounts receivable. 4. Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be 1 percent of the cleaning revenue on account Required a. Organize the transaction data in accounts under an accounting equation b. Determine the following amounts: 1. (1) Net income for Year 1 2. (2) Net cash flow from operating activities for Year 1. Reg Al Reg A2 Reg B Reg C Organize the transaction data in accounts under an accounting equation for Year 1. (Enter any decreases to account balanc with a minus sign. Not all cells in the "Accounts Titles for Retained Earnings" column may require an input - leave cells blan there is no corresponding Retained Earnings input needed.) ROSIE DRY CLEANING Accounting Equation for the Year 1 Balance Sheet Assets Equity Accounts Titles for Retained Cash Accounts Earnings Retained Receivable Allowance Earnings 1. 32,890 32,890 Service revenue 2. 26,312+ (26,312) (329) (Uncollectible accounts expense 26,312+ 6,578 32,561 Event + + + + 3. 329- 329 = Bal Reg A2 > Req A1 Reglaz 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 in the "Accounts Titles for Retained Earnings" column may require an input - leave cells blank If there is no corresponding Retained Earnings input needed.) ROSIE DRY CLEANING Accounting Equation for the Year 2 Balance Sheet Event Assets Equity Accounts Titles for Retained Earnings Accounts Retained Cash Receivable Allowance Earnings Bal. 26,312 6,578 329 32,561 1. (247) (247) 2 38,383 38.383 Service revenue 3. 33,969 (33,969) Uncollectible accounts expense Bal 60,281 - 10.992 82 70,097 . + Req A1 Req A2 Req B Reg C Determine the following amounts for the Year 1 accounting period. (Round your answers to Net income Net cash flow from operating activities Balance of accounts receivable Net realizable value of accounts receivable Complete this question by entering your answers in the tabs below. Req A1 Req A2 Reg B Reqc Determine the following amounts for the Year 2 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 ReqB RU

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