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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 $34,290 of cleaning services on account 2. Collected $27,432 cash 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 $257 account receivable that was determined to be uncollectible. 2. Provided $40,016 of cleaning services on account 3. Collected $35,414 cash from accounts receivable. 4. Adjusted the accounting records to refiect 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 for each year, b. Determine the following amounts: 1. (1) Net Income for Year 1 2. (2) Net cash flow from operating activities for Year 1, 3.(3) Balance of accounts receivable at the end of Year 1. 4. (4) Net realizable value of accounts receivable at the end of Year 1. c. Determine the following amounts: 1. (1) Net income for Year 2 2. (2) Net cash flow from operating activities for Year 2 3. (3) Balance of accounts receivable at the end of Year 2 4. (4) Net realizable value of accounts receivable at the end of Year 2 Req A1 Reg A2 Reg B Regc Organize the transaction data in accounts under an accounting equation for year 1. (Enter any decreases to account balances with a minus sign. If there is no effect on the Accounts Titles for Retained Earnings, leave the cell blank. Not all cells will require entry. Round your answers to the nearest whole dollar.) ROSIE DRY CLEANING Accounting Equation for the Year 1 Balance Sheet Event Assets Equity Accounts Titles for Retained Cash NRV Accounts Retained Earnings Recolvable Earnings 1. 2 3 Bal F Req A2 > ROSIE DRY CLEANING Accounting Equation for the Year 2 Balance Sheet Assets Equity Accounts Titles for Retained NRV Accounts Retained Earnings Receivable Earnings Event Cash Bal 11 1. 2. 3. 111111111 4. Bal Reg A1 Req B > Net income Net cash flow from operating activities Balance of accounts receivable Net realizable value of accounts receivable Net income Net cash flow from operating activities Balance of accounts receivable Net realizable value of accounts receivable

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