Clark Bell started a personal financial planning business when he accepted $56,000 cash as advance payment for managing the financial assets of a large estate. Bell agreed to manage the estate for a one-year period begianing June 1, Year 1. Required a. Show the effects of the advance payment and revenue recognition on the Year 1 financial statements using a horizontal statements model given below. In the Cash Flows column, use OA to designate operating activity, IA for investing activity, FA for financing activity, NC for net change in cash and NA if the account is not affected. (Do not round intermediate calculations and round your final answers to nearest whole number. Enter any decreases to account balances and cash outflows with a minus sign.) CLARK BELL PERSONAL FINANCIAL PLANNING Horizontal Statements Model for Year 1 Stockholders' Equity Retained Earnings Assets Liabilities Income Statement Statement of Cash Flow Event Unearned Cash Revenue Expense = Net Income Revenue 1. Advance payment 2. Revenue earned Totals %3D

Clark Bell started a personal financial planning business when he accepted $56,000 cash as advance payment for managing the financial assets of a large estate. Bell agreed to manage the estate for a one-year period begianing June 1, Year 1. Required a. Show the effects of the advance payment and revenue recognition on the Year 1 financial statements using a horizontal statements model given below. In the Cash Flows column, use OA to designate operating activity, IA for investing activity, FA for financing activity, NC for net change in cash and NA if the account is not affected. (Do not round intermediate calculations and round your final answers to nearest whole number. Enter any decreases to account balances and cash outflows with a minus sign.) CLARK BELL PERSONAL FINANCIAL PLANNING Horizontal Statements Model for Year 1 Stockholders' Equity Retained Earnings Assets Liabilities Income Statement Statement of Cash Flow Event Unearned Cash Revenue Expense = Net Income Revenue 1. Advance payment 2. Revenue earned Totals %3D

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 11C

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