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 $80.000 cash from the issue of common stock 2. Purchased a computer system for $35.000. It has an estimated useful life of five years and a $5,000 salvage value. 3. Paid $2.450 sales tax on the computer system. 4. Collected $65.000 in fees from clients. 5. Paid $1,500 in fees for routine maintenance to service the computers. 8. Recorded double-declining-balance depreciation on the computer system for Year 1. Year 2 1. Paid $1,000 for repairs to the computer system. 2. Bought off-site backup services to maintain the computer system. $1.500. 3. Collected $68.000 in fees from clients. 4. Paid $1.500 in fees to service the computers. 5. Recorded double-declining balance depreciation for Year 2 Year 3 1. Paid $6,000 to upgrade the computer system, which extended the total life of the system to six years. The salvage value did not change 2. Paid $1,200 in fees to service the computers. 3. Collected $70,000 in fees from clients. 4. Recorded double-declining balance depreciation for Year 3. Required a. Record the above transactions in a horizontal statements model. b-1. Prepare income statements for Year 1. Year 2, and Year 3. b-2. Prepare statements of changes in stockholders' equity for Year 1. Year 2 and Year 3. b-3. Prepare balance sheets for Year 1, Year 2, and Year 3. b-4. Prepare statements of cash flows for Year 1. Year 2. and Year 3. X Answer is not complete. Complete this question by entering your answers in the tabs below. Req A Year 1 Req A Year 2 Req A Year 3 Reg B1 Inc Stmt Reg B2 Stmt of Changes Reg B3 Bal Sheet Req B4 Cash Flows Record the above transactions in a horizontal statements model for Year 1. (In the Cash Flow column, indicate whether the item is an operating activity (OA), an investing activity (IA), a financing activity (FA), or net change in cash (NC). If an element is not affected by the event, leave the cell blank. Enter any decreases to account balances and cash outflows with a minus sign. Not all cells will require entry.) Show less ACCOUNTING SOLUTIONS INC. Horizontal Statements Model - Year 1 Income Statement Balance Sheet Assets Stockholders' Equity Event Year 1 Statement of Cash Flows Revenue Expense BV Equipment Cash Net Income Common Stock Retained Earnings + 1. > 0 80,000+ 0 0 0 - FA 2 + 0 + 0 0 - IA 35,000 = 2,450 = 3. 0 + 0 0 0 65,000 0 = IA 80,000 + (35,000) (2,450) + 65,000 (1,500) 0 106,050 4. 0 80,000 0 (35,000) 0 (2,450) 65,000 65,000 (1,500) (1,500) 0 X 0 63,500 106,050 OA 65,000 (1,500) 5. + 1,500= 6. + 0 + 0 x 0 x - 0 x = 37,450 0 65,000 Bal. 80,000 + 63,500 1,500 Req A Year 1 Req A Year 2 Req A Year 3 Req B1 Inc Stmt Req B2 Stmt of Changes Reg B3 Bal Sheet Req B4 Cash Flows Record the above transactions in a horizontal statements model for Year 2. (In the Cash Flow column, indicate whether the item is an operating activity (OA), an investing activity (IA), a financing activity (FA), or net change in cash (NC). If an element is not affected by the event, leave the cell blank. Enter any decreases to account balances and cash outflows with a minus sign. Not all cells will require entry.) ACCOUNTING SOLUTIONS INC. Horizontal Statements Model - Year 2 Balance Sheet Income Statement Assets Stockholders' Equity Event Year 2 Statement of Cash Flows Revenue Expense = Cash Net Income BV Equipment + Common Stock Retained Earnings + Bal. + = + - 1. + = + - 2. + + 3. 3 + + 4. + = + 5. + - + Bal. 0 + 0 = 0 + 0 0 0 0 0 * Answer is not complete. Complete this question by entering your answers in the tabs below. Req A Year 1 Req A Year 2 Req A Year 3 Req B1 Inc Req B2 Stmt Stmt of Changes Req B3 Bal Sheet Req B4 Cash Flows Record the above transactions in a horizontal statements model for Year 3. (In the Cash Flow column, indicate whether the item is an operating activity (OA), an investing activity (IA), a financing activity (FA), or net change in cash (NC). If an element is not affected by the event, leave the cell blank. Enter any decreases to account balances and cash outflows with a minus sign. Not all cells will require entry.) ACCOUNTING SOLUTIONS INC. Horizontal Statements Model - Year 3 Income Statement Balance Sheet Assets Stockholders' Equity Event Year 3 Statement of Cash Flows Revenue Expense = Cash Net Income BV Equipment + Common Stock Retained Earnings + Bal. + + 1 + = + 2. + + - 3. + = + 4. + + Bal. 0 + 0 0 + 0 0 0 0 0 Answer is not complete. Complete this question by entering your answers in the tabs below. Req A Year 1 Req A Year 2 Req A Year 3 Req B1 Inc Stmt Req B2 Stmt of Changes Req B3 Bal Sheet Req B4 Cash Flows Prepare income statements for Year 1, Year 2, and Year 3. ACCOUNTING SOLUTIONS INC. Income Statement For the Year Ended December 31 Year 1 Year 2 Year 3 Expenses Total expenses 0 0 0 Answer is not complete. Complete this question by entering your answers in the tabs below. Req A Year 1 Req A Year 2 Req A Year 3 Req B1 Inc Stmt Req B2 Stmt of Changes Req B3 Bal Sheet Reg B4 Cash Flows Prepare statements of changes in stockholders' equity for Year 1, Year 2, and Year 3. ACCOUNTING SOLUTIONS INC. Statements of Changes in Stockholders' Equity For the Year Ended December 31 Year 1 Year 2 Beginning common stock Year 3 0 0 0 Ending common stock Beginning retained earnings 0 0 0 Ending retained earnings Total stockholders' equity $ 0 $ 0 $ 0 Req A Year 1 Req A Year 2 Req A Year 3 Req B1 Inc Stmt Req B2 Stmt of Changes Req B3 Bal Sheet Reg B4 Cash Flows 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 $ 0 $ 0 $ 0 Total Assets Liabilities Stockholders' equity 0 0 0 Total stockholders' equity Total liabilities and stockholders' equity $ 0 $ 0 $ 0