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. 2018 1. Acquired $52,000 cash from the issue of common stock. 2. Purchased a computer system for $23,600. It has an estimated useful life of five years and a $2,420 salvage value. 3. Paid $1,300 sales tax on the computer system. 4. Collected $32,910 in fees from clients. 5. Paid $1,280 in fees for routine maintenance to service the computers. 6. Recorded double-declining-balance depreciation on the computer system for 2018. Assets Stockholders' Equity Event 2020 Statement of Cash Flow Revenue Expense = Net Income Cash + Equipment Accumulated Depreciation Common Stock + Retained Earnings Bal. + + 1. + + 2. + + = 3. + + 4. + + Bal. 0 + 0 0 = 0 + 0 0 = 0 0 2019 1. Paid $790 for repairs to the computer system. 2. Bought off-site backup services to maintain the computer system, $1,320. 3. Collected $35,910 in fees from clients. 4. Paid $800 in fees to service the computers. 5. Recorded double-declining-balance depreciation for 2019. 2020 1. Paid $3,300 to upgrade the computer system, which extended the total life of the system to six years. The salvage value did not change. 2. Paid $970 in fees to service the computers. 3. Collected $35,180 in fees from clients. 4. Recorded double-declining-balance depreciation for 2020. ACCOUNTING SOLUTIONS INC. Horizontal Statements Model - 2018 Balance Sheet Income Statement Assets Stockholders' Equity Event 2018 Statement of Cash Flow Revenue Expense = Net Income Cash + Equipment Accumulated Depreciation Common Stock + Retained Earnings 1. + + 2. 3. + + + + 4. | + + + + + 5. 6. + Bal. 0 + 0 0 = 0 + 0 0 0 = 0 0 ACCOUNTING SOLUTIONS INC. Horizontal Statements Model - 2019 Balance Sheet Income Statement Assets Stockholders' Equity Event 2019 Statement of Cash Flow Revenue Expense = Net Income Cash + Equipment Accumulated Depreciation Common Stock + Retained Earnings Bal. + + 1. + 2. + 3. = 4. + + + + + + + + + + + 5. Bal. 0 0 0 = 0 + 0 0 0 = 0 0 ACCOUNTING SOLUTIONS INC. Horizontal Statements Model - 2020 Balance Sheet Income Statement Assets Stockholders' Equity Event 2020 Statement of Cash Flow Revenue Expense = Net Income Cash + Equipment Accumulated Depreciation Common Stock + Retained Earnings Bal. + 1. + 2. + + + + + + + 3. + = + + + + 4. Bal. 0 + 0 0 = 0 + 0 0 0 = 0 0 Income Statement For the Year Ended December 31 2018 2019 2020 Expenses Total expenses 0 0 0 ACCOUNTING SOLUTIONS INC. Statements of Changes in Stockholders' Equity For the Year Ended December 31 2018 2019 2020 Beginning common stock 0 0 0 Ending common stock Beginning retained earnings 0 0 Ending retained earnings Total stockholders' equity 0 0 $ $ 0 $ 0 UITV VEL As of December 31 2018 2019 2020 Assets Total Assets $ 0 $ 0 $ 0 Liabilities Stockholders' equity 0 0 0 Total stockholders' equity Total liabilities and stockholders' equity $ 0 $ 0 $ 0 ACCOUNTING SOLUTIONS INC. Statements of Cash Flows 2018 2019 2020 Cash flows from operating activities 0 0 0 Net cash flows from operating activities Cash flows from investing activities 0 0 0 Net cash flows from investing activities Cash flows from financing activities Cash flows from investing activities 0 0 0 Net cash flows from investing activities Cash flows from financing activities 0 0 0 Net cash flows from financing activities Net change in cash 0 0 0 Ending Cash Balance $ 0 $ 0 $ 0
