Holloway Company earned $6, 700 of service revenue on account during Year1. The company collected $5, 695 cash from accounts receivable during Year1. Required Based on this information alone, determine the following forHolloway Company. The balance of the accounts receivable that would bereported on the December 31, Year 1, balance sheet. The amount of netincome that would be reported on the Year 1 income statement. The amount ofnet cash flow from operating activities that would be reported on the Year 1statement of cash flows. The amount of retained earnings that would bereported on the Year 1 balance sheet.EventEarned revenueCollected accounts receivableEnding balanceHOLLOWAY COMPANYEffect of Events on the Year 1 Accounting EquationAssetsLiabilities +Cash+++AccountsReceivable=C|| || ||+++Stockholders' EquityCommonStock+++RetainedEarnings

ACCOUNTING EQUATIONAccounting Equation is a Financial Accounting Technique which represents the…

Answered: Holloway Company earned $6, 700 of…

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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On January 1. Year 2 Grande Company had a $10,000 balance in the Accounts Receivable account and a zero balance in the Allowance for Doubtful Accounts account. During Year 2. Grande provided $56,000 of service on account. The company collected $52.500 cash from accounts receivable. Uncollectible accounts are estimated to be 2% of sales on account. What is the amount of cash flow from operating activities that would appear on the Year 2 statement of cash flows? Multiple Choice $51,450 $52.500 $56,000 $46,200
The following transactions apply to Jova Company for Year 1, the first year of operation: Issued $20,000 of common stock for cash. Recognized $220,000 of service revenue earned on account. Collected $173,000 from accounts receivable. Paid $135,000 cash for operating expenses. Adjusted the accounts to recognize uncollectible accounts expense. Jova uses the allowance method of accounting for uncollectible accounts and estimates that uncollectible accounts expense will be 1 percent of sales on account. The following transactions apply to Jova for Year 2: Recognized $330,000 of service revenue on account. Collected $345,000 from accounts receivable. Determined that $2,650 of the accounts receivable were uncollectible and wrote them off. Collected $1,800 of an account that had previously been written off. Paid $215,000 cash for operating expenses. Adjusted the accounts to recognize uncollectible accounts expense for Year 2. Jova estimates uncollectible accounts expense will be 0.5…
Vaughn Company completed its first year of operations on December 31, 2022. Its initial income statement showed that Vaughn had sales revenue of $196,100 and operating expenses of $89,100. Accounts receivable and accounts payable at year-end were $53,500 and $27,700, respectively. Assume that accounts payable related to operating expenses. Ignore income taxes.Compute net cash provided by operating activities using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Transactions related to revenue and cash receipts completed by Crowne Business ServicesCo. during the period April 2–30 are as follows:Apr. 2. Issued Invoice No. 793 to Ohr Co., $4,680.5. Received cash from Mendez Co. for the balance owed on its account.6. Issued Invoice No. 794 to Pinecrest Co., $1,990.13. Issued Invoice No. 795 to Shilo Co., $3,450.Post revenue and collections to the accounts receivable subsidiary ledger.15. Received cash from Pinecrest Co. for the balance owed on April 1.16. Issued Invoice No. 796 to Pinecrest Co., $5,500.Post revenue and collections to the accounts receivable subsidiary ledger.19. Received cash from Ohr Co. for the balance due on invoice of April 2.20. Received cash from Pinecrest Co. for balance due on invoice of April 6.22. Issued Invoice No. 797 to Mendez Co., $7,470.25. Received $3,200 note receivable in partial settlement of the balance due on theShilo Co. account. Apr. 30. Received cash from fees earned, $12,890.Post revenue and collections…
As of January 1, Year 2, Room Designs, Incorporated had a balance of $5,200 in Cash, $2,850 in Common Stock, and $2,350 in Retained Earnings. These were the only accounts with balances in the ledger on January 1, Year 2. Further analysis of the company's cash account indicated that during the Year 2 accounting period, the company had (1) net cash inflow from operating activities of $5,450, (2) net cash outflow for investing activities of $13,700, and (3) net cash inflow from financing activities of $13,900. All revenue and expense events were cash events. The following accounts and balances represent the financial condition of Room Designs, Incorporated as of December 31, Year 2, before closing. Assets Cash Balance 10, 850 Land Balance 13,700 ROOM DESIGNS INCORPORATED General Ledger Req A Liabilities Notes Payable Balance 6,500 Req B Required a. Assume that the net cash inflow from financing activities of $13,900 was caused by three events. Based on the given information, identify…
savita
Emma’s balance sheet showed an accounts receivable balance of $75 000 at the beginning of the year and $97 000 at the end of the year. Emma reported sales of $1 150 000 on her income statement. REQUIRED: Using the direct method, determine the amount that Emma will report as cash collections in the operating activities section of the statement of cash flows.
Zirkle Company borrowed $129,000 from Plains Bank on July 31, Year 1. The note carried a 6% interest rate with a one-year term to maturity. Required: a. Show the effects of borrowing the money and the December 31, Year 1 adjustment on the accounting equation. b. What is the amount of interest expense for Year 1? c. Prepare a statement of cash flows for the Zirkle Company for Year 1. Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare a statement of cash flows for the Zirkle Company for Year 1. Note: Cash outflows should be indicated with a minus sign. ZIRKLE COMPANY Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flows from operating activities Net cash flow from operating activities Cash flows from investing activities Net cash flow from investing activities Cash flows from financing activities Net cash flow from financing activities < Required B Required C
How do you calculate the first years net income under the cash basis of accoun
Limerick Company maintained the accounting records using the cash basis of accounting. During the current year, the entity collected P5,000,000 in fees from clients. On January 1, accounts receivable of P800,000 and unearned fees of P500,000 had been recorded. On December 31, accounts receivable increased to P1,500,000 while unearned fees increased to P900,000. Under accrual basis, what is the service revenue for the current year?
Dhapa
In its first year of operations, Grace Company reports the following: Revenue of $60,000 ($52,000 cash received from customers); Expenses of $35,000 ($31,000 cash paid toward expenses). Net income under the cash basis of accounting is:

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