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Golden Manufacturing Company started operations by acquiring $150,000 cash from the issue of common stock. On January 1, Year 1, the company purchased equipment that cost $120,000 cash, had an expected useful life of six years, and had an estimated salvage value of $4,000. Golden Manufacturing earned $72,000 and $83,000 of cash revenue during Year 1 and Year 2, respectively. Golden Manufacturing uses double-declining-balance depreciation. Required a. Record the purchase in a horizontal statements model. b-1. Prepare income statements for Year 1 and Year 2. b-2. Prepare balance sheets for Year 1 and Year 2. b-3. Prepare statements of cash flows for Year 1 and Year 2. Complete this question by entering your answers in the tabs below. Reg B1 Inc Stmt Req B2 Bal Sheet Reg B3 Stmt Cash Reg A Record the purchase in a horizontal statements model. (In the Cash Flow column, indicate whether the item is an operating activity (OA), an i cash (NC). Enter any decreases to account balances and cash outflows with a minus sign. Do not round intermediate calculations. Round the f Flow" column may require an input - leave cells blank if there is no corresponding input needed.)

Golden Manufacturing Company started operations by acquiring $150,000 cash from the issue of common stock. On January 1, Year 1, the company purchased equipment that cost $120,000 cash, had an expected useful life of six years, and had an estimated salvage value of $4,000. Golden Manufacturing earned $72,000 and $83,000 of cash revenue during Year 1 and Year 2, respectively. Golden Manufacturing uses double-declining-balance depreciation. Required a. Record the purchase in a horizontal statements model. b-1. Prepare income statements for Year 1 and Year 2. b-2. Prepare balance sheets for Year 1 and Year 2. b-3. Prepare statements of cash flows for Year 1 and Year 2. Complete this question by entering your answers in the tabs below. Reg B1 Inc Stmt Req B2 Bal Sheet Reg B3 Stmt Cash Reg A Record the purchase in a horizontal statements model. (In the Cash Flow column, indicate whether the item is an operating activity (OA), an i cash (NC). Enter any decreases to account balances and cash outflows with a minus sign. Do not round intermediate calculations. Round the f Flow" column may require an input - leave cells blank if there is no corresponding input needed.)

FINANCIAL ACCOUNTING
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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Golden Manufacturing Company started operations by acquiring $150,000 cash from the issue of common stock. On January 1, Year 1, the company purchased equipment that cost $120,000 cash, had an expected useful life of six years, and had an estimated salvage value of $4,000. Golden Manufacturing earned $72,000 and $83,000 of cash revenue during Year 1 and Year 2, respectively. Golden Manufacturing uses double-declining-balance depreciation. Required a. Record the purchase in a horizontal statements model. b-1. Prepare income statements for Year 1 and Year 2. b-2. Prepare balance sheets for Year 1 and Year 2. b-3. Prepare statements of cash flows for Year 1 and Year 2. Complete this question by entering your answers in the tabs below. Reg B1 Inc Stmt Reg B2 Bal Sheet Req B3 Stmt Cash Req A Record the purchase in a horizontal statements model. (In the Cash Flow column, indicate whether the item is an operating activity (OA), an investing cash (NC). Enter any decreases to account balances and cash outflows with a minus sign. Do not round intermediate calculations. Round the final anse Flow" column may require an input - leave cells blank if there is no corresponding input needed.)
Transcribed Image Text:Golden Manufacturing Company started operations by acquiring $150,000 cash from the issue of common stock. On January 1, Year 1, the company purchased equipment that cost $120,000 cash, had an expected useful life of six years, and had an estimated salvage value of $4,000. Golden Manufacturing earned $72,000 and $83,000 of cash revenue during Year 1 and Year 2, respectively. Golden Manufacturing uses double-declining-balance depreciation. Required a. Record the purchase in a horizontal statements model. b-1. Prepare income statements for Year 1 and Year 2. b-2. Prepare balance sheets for Year 1 and Year 2. b-3. Prepare statements of cash flows for Year 1 and Year 2. Complete this question by entering your answers in the tabs below. Reg B1 Inc Stmt Reg B2 Bal Sheet Req B3 Stmt Cash Req A Record the purchase in a horizontal statements model. (In the Cash Flow column, indicate whether the item is an operating activity (OA), an investing cash (NC). Enter any decreases to account balances and cash outflows with a minus sign. Do not round intermediate calculations. Round the final anse Flow" column may require an input - leave cells blank if there is no corresponding input needed.)
Req B1 Inc Stmt Req B2 Bal Sheet Req B3 Stmt Cash Reg A Record the purchase in a horizontal statements model. (In the Cash Flow column, indicate whether the item is an operating activity (OA), an investing activity (IA), a financing activity (FA) and net change in cash (NC). Enter any decreases to account balances and cash outflows with a minus sign. Do not round intermediate calculations. Round the final answers to nearest dollar armount. Not all cells in the "Cash Flow" column may require an Input - leave cells blank if there is no corresponding input needed.) Show less A GOLDEN MANUFACTURING COMPANY Horizontal Statements Model Balance Sheet Income Statement Equity Statement of Cash Assets Flows Event Accumulated Retained Revenue Expense =Net Income Common Cash + Equipment + Depreciation Stock Earnings Year 1 Issue stock + Purchase equipment + Revenue + Depreciation expense + Balance Year 2 + Beg. bal. Revenue Depreciation expense End, bal. Reg B1 Inc Stmt >
Transcribed Image Text:Req B1 Inc Stmt Req B2 Bal Sheet Req B3 Stmt Cash Reg A Record the purchase in a horizontal statements model. (In the Cash Flow column, indicate whether the item is an operating activity (OA), an investing activity (IA), a financing activity (FA) and net change in cash (NC). Enter any decreases to account balances and cash outflows with a minus sign. Do not round intermediate calculations. Round the final answers to nearest dollar armount. Not all cells in the "Cash Flow" column may require an Input - leave cells blank if there is no corresponding input needed.) Show less A GOLDEN MANUFACTURING COMPANY Horizontal Statements Model Balance Sheet Income Statement Equity Statement of Cash Assets Flows Event Accumulated Retained Revenue Expense =Net Income Common Cash + Equipment + Depreciation Stock Earnings Year 1 Issue stock + Purchase equipment + Revenue + Depreciation expense + Balance Year 2 + Beg. bal. Revenue Depreciation expense End, bal. Reg B1 Inc Stmt >
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