Suppose your company sells services of $150 in exchange for $120 cash and $30 on account. Depreciation of $50 also is recorded.

Required:

1

Prepare the journal entries to record these transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Record the service revenue of $120 for cash and $30 on account.

What journal entry is it???

2.) Record the depreciation expense of $50.

What kind of Journal entry is it?

3.) Calculate the amount that should be reported as net cash flow from operating activities. Net Cash FLow?

4.)

Calculate the amount that should be reported as net income. Net INCOME? 5.)Show how the indirect method would convert net income (requirement 3) to net cash flow from operating activities (requirement 2). (List cash outflows as negative amounts.)