a. What is the amount of total liabilities on the December 31, Year 1, balance sheet? b. What is the amount of net income on the Year 1 income statement? c. What is the amount of cash flow from operating activities on the Year 1 statement of cash flows? Helen Parish started a design company on January 1, Year 1. On April 1, Year 1, Parish borrowed cash from a local bank by issuing a one-year $120,000 face value note with annual interest based on an 8 percent discount. During Year 1, Parish provided services for $72,000 cash. Required Answer the following questions. Record the events in an accounting equation prior to answering the questions. Complete this question by entering your answers in the tabs below. Accounting Equation Required A Required B Required C Record the events in an accounting equation prior to answering the questions. (In the Statement of Cash Flows column, use the initials "OA" f "FA" for financing activities, "IA" for investing activities, and "NC" for net change in cash. Not all cells require input. Enter any decreases to ac cash outflows with a minus sign. Round your answers to the nearest whole dollar.) Balance Sheet Income Statement Event Assets Cash Liabilities Carrying Value of Notes Payable Equity Retained Earnings Revenue Expenses = Net Income Statement of Cash Flows 1. 2. 3. Total 0 = 0+ ° Accounting Equation Required A > 0
a. What is the amount of total liabilities on the December 31, Year 1, balance sheet? b. What is the amount of net income on the Year 1 income statement? c. What is the amount of cash flow from operating activities on the Year 1 statement of cash flows? Helen Parish started a design company on January 1, Year 1. On April 1, Year 1, Parish borrowed cash from a local bank by issuing a one-year $120,000 face value note with annual interest based on an 8 percent discount. During Year 1, Parish provided services for $72,000 cash. Required Answer the following questions. Record the events in an accounting equation prior to answering the questions. Complete this question by entering your answers in the tabs below. Accounting Equation Required A Required B Required C Record the events in an accounting equation prior to answering the questions. (In the Statement of Cash Flows column, use the initials "OA" f "FA" for financing activities, "IA" for investing activities, and "NC" for net change in cash. Not all cells require input. Enter any decreases to ac cash outflows with a minus sign. Round your answers to the nearest whole dollar.) Balance Sheet Income Statement Event Assets Cash Liabilities Carrying Value of Notes Payable Equity Retained Earnings Revenue Expenses = Net Income Statement of Cash Flows 1. 2. 3. Total 0 = 0+ ° Accounting Equation Required A > 0
Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 46P: Blue Company, an architectural firm, has a bookkeeper who maintains a cash receipts and...
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Question
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Transcribed Image Text:a. What is the amount of total liabilities on the December 31, Year 1, balance sheet?
b. What is the amount of net income on the Year 1 income statement?
c. What is the amount of cash flow from operating activities on the Year 1 statement of cash flows?
Transcribed Image Text:Helen Parish started a design company on January 1, Year 1. On April 1, Year 1, Parish borrowed cash from a local bank by issuing a one-year $120,000 face value note with annual interest based on an 8 percent discount. During Year 1, Parish provided
services for $72,000 cash.
Required
Answer the following questions. Record the events in an accounting equation prior to answering the questions.
Complete this question by entering your answers in the tabs below.
Accounting
Equation
Required A Required B
Required C
Record the events in an accounting equation prior to answering the questions. (In the Statement of Cash Flows column, use the initials "OA" f
"FA" for financing activities, "IA" for investing activities, and "NC" for net change in cash. Not all cells require input. Enter any decreases to ac
cash outflows with a minus sign. Round your answers to the nearest whole dollar.)
Balance Sheet
Income Statement
Event
Assets
Cash
Liabilities
Carrying Value of
Notes Payable
Equity
Retained
Earnings
Revenue
Expenses = Net Income
Statement of Cash
Flows
1.
2.
3.
Total
0 =
0+
°
Accounting Equation
Required A >
0
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