1. Provided $45,000 of cleaning services on account. 2. Collected $39,000 cash from accounts receivable. 3. Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be 1 percent of the cleaning revenue on account. Events Affecting Year 2 1. Wrote off a $300 account receivable that was determined to be uncollectible. 2. Provided $62,000 of cleaning services on account. 3. Collected $61,000 cash from accounts receivable. 4. Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be 1 percent of the cleaning revenue on account.
1. Provided $45,000 of cleaning services on account. 2. Collected $39,000 cash from accounts receivable. 3. Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be 1 percent of the cleaning revenue on account. Events Affecting Year 2 1. Wrote off a $300 account receivable that was determined to be uncollectible. 2. Provided $62,000 of cleaning services on account. 3. Collected $61,000 cash from accounts receivable. 4. Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be 1 percent of the cleaning revenue on account.
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter8: Employer Taxes, Payments, And Reports
Section: Chapter Questions
Problem 3PB
Related questions
Topic Video
Question
Answer full question please.
![pints
Req A1
Req A2
Req B
Req C
Organize the transaction data in accounts under an accounting equation for Year 1. (Enter any decreases to account balances with
a minus sign. Not all cells in the "Accounts Titles for Retained Earnings" column may require an input - leave cells blank if there is
no corresponding Retained Earnings input needed.)
eBook
ROSIE DRY CLEANING
Print
Accounting Equation for the Year 1
Balance Sheet
Assets
Equity
Accounts Titles for Retained
References
Event
Earnings
Accounts
Retained
Cash
Allowance
Receivable
Earnings
1.
2.
3.
Bal.
Req A2 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbac5cd56-9885-4a25-8e51-dfc1bb78a29e%2F2043f8f8-60d2-45a1-b3f3-a09a68f6e09c%2Fnkusbhd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:pints
Req A1
Req A2
Req B
Req C
Organize the transaction data in accounts under an accounting equation for Year 1. (Enter any decreases to account balances with
a minus sign. Not all cells in the "Accounts Titles for Retained Earnings" column may require an input - leave cells blank if there is
no corresponding Retained Earnings input needed.)
eBook
ROSIE DRY CLEANING
Print
Accounting Equation for the Year 1
Balance Sheet
Assets
Equity
Accounts Titles for Retained
References
Event
Earnings
Accounts
Retained
Cash
Allowance
Receivable
Earnings
1.
2.
3.
Bal.
Req A2 >
![3.
Rosie Dry Cleaning was started on January 1, Year 1. It experienced the following events during its first two years of operation:
Events Affecting Year 1
1. Provided $45,000 of cleaning services on account.
2. Collected $39,000 cash from accounts receivable.
3. Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be 1 percent of the cleaning
revenue on account.
10
points
eBook
Events Affecting Year 2
1. Wrote off a $300 account receivable that was determined to be uncollectible.
2. Provided $62,000 of cleaning services on account.
3. Collected $61,000 cash from accounts receivable.
4. Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be 1 percent of the cleaning
Print
References
revenue on account.
Required
a. Organize the transaction data in accounts under an accounting equation.
b. Determine the following amounts:
1. (1) Net income for Year 1.
2. (2) Net cash flow from operating activities for Year 1.
3. (3) Balance of accounts receivable at the end of Year 1.
4. (4) Net realizable value of accounts receivable at the end of Year 1
c. Determine the following amounts:
1. (1) Net income for Year 2.
2. (2) Net cash flow from operating activities for Year 2.
3. (3) Balance of accounts receivable at the end of Year 2.
4. (4) Net realizable value of accounts receivable at the end of Year 2.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbac5cd56-9885-4a25-8e51-dfc1bb78a29e%2F2043f8f8-60d2-45a1-b3f3-a09a68f6e09c%2Fuzheq6_processed.jpeg&w=3840&q=75)
Transcribed Image Text:3.
Rosie Dry Cleaning was started on January 1, Year 1. It experienced the following events during its first two years of operation:
Events Affecting Year 1
1. Provided $45,000 of cleaning services on account.
2. Collected $39,000 cash from accounts receivable.
3. Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be 1 percent of the cleaning
revenue on account.
10
points
eBook
Events Affecting Year 2
1. Wrote off a $300 account receivable that was determined to be uncollectible.
2. Provided $62,000 of cleaning services on account.
3. Collected $61,000 cash from accounts receivable.
4. Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be 1 percent of the cleaning
Print
References
revenue on account.
Required
a. Organize the transaction data in accounts under an accounting equation.
b. Determine the following amounts:
1. (1) Net income for Year 1.
2. (2) Net cash flow from operating activities for Year 1.
3. (3) Balance of accounts receivable at the end of Year 1.
4. (4) Net realizable value of accounts receivable at the end of Year 1
c. Determine the following amounts:
1. (1) Net income for Year 2.
2. (2) Net cash flow from operating activities for Year 2.
3. (3) Balance of accounts receivable at the end of Year 2.
4. (4) Net realizable value of accounts receivable at the end of Year 2.
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