Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribedimage text in transcribed
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. Paid $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. Paid $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. Paid $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. Paid $940 In fees to service the computers. 3. Collected $36,150 In fees from clients. 4. Recorded double-declining-balance depreciation for Year 3.Req B2 Stimt Req A Year 1 Req A Year 2 Req A Year 3 Req B1 Inc Req B3 Bal Req 84 Cash Stmt of Changes Sheet Flows Prepare statements of cash flows for Year 1, Year 2, and Year 3. (Cash outflows should be indicated with a minus sign.) ACCOUNTING SOLUTIONS INC. Statement of Cash Flows For the Year ended December 31 Year 1 Year 2 Year 3 Cash flows from operating activities Net cash flows from operating activities Cash flows from investing activities Net cash flows from investing activities Cash flows from financing activities Net cash flows from financing activities Net change in cash Ending Cash Balance

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Charles E. Davis, Elizabeth Davis

2nd edition

1118548639, 9781118800713, 1118338448, 9781118548639, 1118800710, 978-1118338445

More Books

Students also viewed these Accounting questions

Question

Define belongingness, competence, and autonomy.

Answered: 1 week ago

Question

Always have the dignity of the other or others as a backdrop.

Answered: 1 week ago