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 $27,810 of cleaning services on account. 2. Collected $22,248 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 $209 account receivable that was determined to be uncollectible. 2. Provided $32,454 of cleaning services on account 3. Collected $28,722 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) 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. LICall I VILED UHOLLUULIL 3. Collected $28,722 cash from accounts receivable. 4. Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be 1 pe revenue on account. Required a. Organize the transaction data in accounts under an accounting equation. 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) Net realizable value of accounts receivable at the end of Year 2. Answer is not complete. Complete this question by entering your answers in the tabs below. Reg A1 Req 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 in the "Accounts Titles for Retained Earnings" column may require an input - leave cells blank if there is no corresponding Retained Earnings input needed.) Event Cash ROSIE DRY CLEANING Accounting Equation for the Year 1 Balance Sheet Assets Equity Accounts Titles for Retained Earnings Accounts Retained Receivable Allowance Earnings 27,810- 27.810 Service revenue (22,748) - 279 x = (279) X Salaries expense 5,062 279 27.531 1 2 3. 22,748 + + Bal 22,748 Reg A2 > Complete this question by entering your answers in the tabs below. Req A1 Red A2 Reqs 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.) Event Cash 22,748 + Bal 1. 2 ROSIE DRY CLEANING Accounting Equation for the Year 2 Balance Sheet Assets Equity Accounts Titles for Retained Accounts Retained Earnings Receivable Allowance Earnings 5,062 % 279 27,532 209 X 279 32.454 32,464 Service revenue (28,722) Salaries expense 9,003 558 59,986 + + 3 28,722+ 4. Bal 51,470 + Req A1 Req A2 ReqB ReqC Determine the following amounts for the Year 1 accounting period. (Round your answers to neare Net income Net cash flow from operating activities Balance of accounts receivable Net realizable value of accounts receivable $ 27,532 $ 22,748 $ 5,062 X $ 4,748 (Reg A2 Regc > Req A1 Req A2 Req B Reqc Determine the following amounts for the Year 2 accounting period. (Round your answers to nearest Net income Net cash flow from operating activities Balance of accounts receivable Net realizable value of accounts receivable $ 59,661 $ 28,772 $ 8,585 s 8,191
