12345Amounts billed to clients for services rendered6 Cash collected from clients7Cash disbursements:8Salaries paid to employees for services rendered during the year9Utilities10Purchase of insurance policy11 Additional information:12Utility costs year 113Liabilities at the end of year 214Anticipated bad debts on receivablesInsurance policy termA1. Calculate the net operating cash flow for years 1 and 2.2. Calculate the amount of receivables from clients that the firm would2223242526 Revenues27 Expenses:28 Salaries29 Utilities3031323334BListed below are several transactions that took place during the first two years of operations for an accounting firm:InsuranceNet income (loss)151617 Required:18192021 show in its year 1 and year 2 balance sheets prepared according to theaccrual accounting model.3. Prepare an income statement for each year according to the accrual accounting model.Income Statements - Accrual basisYear 1$260,000208,000104,00062,00064,000Year 1($22,000)Year 1$260,000C104,00050,000Year 2$325,000293,000130,00087,000050,000004Year 2$76,000Year 2$325,000D130,000years[

Income statement :— It is one of the financial statement that shows profitability, total revenue and…

3 9 A Amounts billed to clients for services rendered Cash collected from clients Cash disbursements: Salaries paid to employees for services rendered during the year Utilities Purchase of insurance policy 0 1 Additional information: 2 Utility costs year 1 3 Liabilities at the end of year 2 4 Anticipated bad debts on receivables 5 Insurance policy term 6 7 Required: 8 2 3 4 Listed below are several transactions that took place during the first two years of operations for an accounting firm: 91. Calculate the net operating cash flow for years 1 and 2. 0 2. Calculate the amount of receivables from clients that the firm would 1 show in its year 1 and year 2 balance sheets prepared according to the accrual accounting model. B Insurance Net income (loss) Year 1 $260,000 208,000 104,000 62,000 64,000 2 3 3. Prepare an income statement for each year according to the accrual accounting model. 4 Income Statements - Accrual basis 5 6 Revenues 7 Expenses: 8 Salaries 9 Utilities 0 1 Year 1 ($22,000) Year 2 $325,000 293,000 130,000 87,000 0 50,000 0 0 4 Year 2 $76,000 Year 1 Year 2 $260,000 $325,000 D 104,000✔ 130,000 50,000 years I

3 9 A Amounts billed to clients for services rendered Cash collected from clients Cash disbursements: Salaries paid to employees for services rendered during the year Utilities Purchase of insurance policy 0 1 Additional information: 2 Utility costs year 1 3 Liabilities at the end of year 2 4 Anticipated bad debts on receivables 5 Insurance policy term 6 7 Required: 8 2 3 4 Listed below are several transactions that took place during the first two years of operations for an accounting firm: 91. Calculate the net operating cash flow for years 1 and 2. 0 2. Calculate the amount of receivables from clients that the firm would 1 show in its year 1 and year 2 balance sheets prepared according to the accrual accounting model. B Insurance Net income (loss) Year 1 $260,000 208,000 104,000 62,000 64,000 2 3 3. Prepare an income statement for each year according to the accrual accounting model. 4 Income Statements - Accrual basis 5 6 Revenues 7 Expenses: 8 Salaries 9 Utilities 0 1 Year 1 ($22,000) Year 2 $325,000 293,000 130,000 87,000 0 50,000 0 0 4 Year 2 $76,000 Year 1 Year 2 $260,000 $325,000 D 104,000✔ 130,000 50,000 years I

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following account balances come from the records of Ourso Company: Beginning Balance $2,800 Ending Balance $3,600 350 Accounts receivable Allowance for doubtful accounts 280 During the accounting period, Ourso recorded $14,000 of sales revenue on account. The company also wrote off a $150 account receivable. Required a. Determine the amount of cash collected from receivables. b. Determine the amount of uncollectible accounts expense recognized during the period. a Collections of accounts receivable b. Uncollectible accounts expense
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Problem 5 Evaluate the following items, and determine the correct amount to report on the income statement for each, using the accrual basis of accounting for the referenced period of time. A Company had beginning accounts receivable of $16,000. The company reported cash basis revenues of $200,000. The ending accounts receivable amounted to $36,000. B Company purchased $50,000 of supplies. Supplies on hand decreased by $10,000 during the period. C Company started the year with no prepaid rent, and ended the year with $2,000 in prepaid rent. Rent expense on a cash basis was $26,000. Revenues Supplies Rent Equipment A the beginning of the year, D Company purchased and expensed an item of equipment for $40,000. The equipment has a 4-year life, and will be worthless after four years. There were no wages payable at the beginning of the year. E Company paid $290,000 in wages during the year, and owed an additional $24,000 at year's end. Wages Worksheet 5 Revenues Supplies Rent Equipment…
Current Attempt in Progress Sandhill Company has been in business for several years and has the following information for its operations in the current year: Total credit sales Accounts written off in the year Accounts receivable balance on December 31 (after the accounting writeoff above) (a) Credit losses $ $3,264,000 Assume that Sandhill Company estimates its expected credit losses based on an analysis of the length of time its receivables have been outstanding. After completing this analysis and applying the expected rates of credit losses, the company estimated total expected credit losses of $55,000. Credit losses 68,000 i. What amount of credit losses will the company record if it has a credit balance (before adjustment) of $6,500 in its Allowance for Expected Credit Losses on December 31? $ 546,000 eTextbook and Media -15 E ii. What amount of credit losses will it record if there is a debit balance (before adjustment) of $6,500 in its Allowance for Expected Credit Losses on…
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