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The following transactions pertain to Accounting Solutions Inc. Assume the transactions for the purchase of the computer and any capital Improvements occur on January 1
The following transactions pertain to Accounting Solutions Inc. Assume the transactions for the purchase of the computer and any capital Improvements occur on January 1 each year. Year 1 1. Acquired $61,000 cash from the issue of common stock. 2. Purchased a computer system for $26,300. It has an estimated useful life of five years and a $3,540 salvage value. 3. Pald $1,400 sales tax on the computer system. 4. Collected $30,920 In fees from clients. 5. Paid $1,260 In fees for routine maintenance to service the computers. 6. Recorded double-declining-balance depreciation on the computer system for Year 1. Year 2 1. Pald $830 for repairs to the computer system. 2. Bought off-site backup services to maintain the computer system, $1,090. 3. Collected $33,920 In fees from clients. 4. Paid $930 in fees to service the computers. 5. Recorded double-declining-balance depreciation for Year 2. Year 3 1. Pald $3,400 to upgrade the computer system, which extended the total life of the system to six years. The salvage value did not change. 2. Pald $940 In fees to service the computers. 3. Collected $36,150 In fees from clients. 4. Recorded double-declining-balance depreciation for Year 3. Complete this question by entering your answers in the tabs below. Req B2 Stmt of Changes Req B3 Bal Sheet Reg B4 Cash Flows Req A Year 1 Req A Year 2 Req A Year 3 Req B1 Inc Stmt Prepare balance sheets for Year 1, Year 2, and Year 3. ACCOUNTING SOLUTIONS INC. Balance Sheet As of December 31 Year 1 Year 2 Year 3 Assets Total Assets Liabilities Stockholders' equity Total stockholders' equity Total liabilities and stockholders' equity
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