Holloway Company earned $9,400 of service revenue on account during Year 1. The company collected $7,990 cash from accounts receivable during Year 1. Required Based on this information alone, determine the following for Holloway Company. (Hint: Record the events in general ledger accounts under an accounting equation before satisfying the requirements.) a. The balance of the accounts receivable that would be reported on the December 31, Year 1, balance sheet. b. The amount of net income that would be reported on the Year 1 income statement. c. The amount of net cash flow from operating activities that would be reported on the Year 1 statement of cash flows. d. The amount of retained earnings that would be reported on the Year 1 balance sheet. Complete this question by entering your answers in the tabs below. Accounting Equation Reg A to D The balance of the accounts receivable that would be reported on the December 31, Year 1, balance sheet. The amount of net income that would be reported on the Year 1 income statement. The amount of net cash flow from operating activities that would be reported on the Year 1 statement of cash flows. The amount of retained earnings that would be reported on the Year 1 balance sheet. ............ Show lesS A: a. Accounts receivable b. Net income C. Net cash flow from operating activities d. Retained earnings < Accounting Equation Reg A to D
Holloway Company earned $9,400 of service revenue on account during Year 1. The company collected $7,990 cash from accounts receivable during Year 1. Required Based on this information alone, determine the following for Holloway Company. (Hint: Record the events in general ledger accounts under an accounting equation before satisfying the requirements.) a. The balance of the accounts receivable that would be reported on the December 31, Year 1, balance sheet. b. The amount of net income that would be reported on the Year 1 income statement. c. The amount of net cash flow from operating activities that would be reported on the Year 1 statement of cash flows. d. The amount of retained earnings that would be reported on the Year 1 balance sheet. Complete this question by entering your answers in the tabs below. Accounting Equation Reg A to D The balance of the accounts receivable that would be reported on the December 31, Year 1, balance sheet. The amount of net income that would be reported on the Year 1 income statement. The amount of net cash flow from operating activities that would be reported on the Year 1 statement of cash flows. The amount of retained earnings that would be reported on the Year 1 balance sheet. ............ Show lesS A: a. Accounts receivable b. Net income C. Net cash flow from operating activities d. Retained earnings < Accounting Equation Reg A to D
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
Transcribed Image Text:Holloway Company earned $9,400 of service revenue on account during Year 1. The company collected $7,990 cash from accounts
receivable during Year 1.
Required
Based on this information alone, determine the following for Holloway Company. (Hint: Record the events in general ledger accounts
under an accounting equation before satisfying the requirements.)
a. The balance of the accounts receivable that would be reported on the December 31, Year 1, balance sheet.
b. The amount of net income that would be reported on the Year 1 income statement.
c. The amount of net cash flow from operating activities that would be reported on the Year 1 statement of cash flows.
d. The amount of retained earnings that would be reported on the Year 1 balance sheet.
Complete this question by entering your answers in the tabs below.
Accounting
Equation
Req A to D
The balance of the accounts receivable that would be reported on the December 31, Year 1, balance sheet.
The amount of net income that would be reported on the Year 1 income statement.
The amount of net cash flow from operating activities that would be reported on the Year 1 statement of cash flows.
The amount of retained earnings that would be reported on the Year 1 balance sheet.
Show lesS A:
a.
Accounts receivable
b. Net income
C.
Net cash flow from operating activities
d. Retained earnings
< Accounting Equation
Req A to D >
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1 of 1
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Transcribed Image Text:Holloway Company earned $9,400 of service revenue on account during Year 1. The company collected $7,990 cash from accounts
receivable during Year 1.
Required
Based on this information alone, determine the following for Holloway Company. (Hint: Record the events in general ledger accounts
under an accounting equation before satisfying the requirements.)
a. The balance of the accounts receivable that would be reported on the December 31, Year 1, balance sheet.
b. The amount of net income that would be reported on the Year 1 income statement.
C. The amount of net cash flow from operating activities that would be reported on the Year 1 statement of cash flows.
d. The amount of retained earnings that would be reported on the Year 1 balance sheet.
Complete this question by entering your answers in the tabs below.
Accounting
Equation
Reg A to D
Based on this information alone, determine the following for Holloway Company. (Hint: Record the events in general ledger accounts
under an accounting equation before satisfying the requirements.) (Enter any decreases to account balances with a minus sign. Not all
cells require input.)
HOLLOWAY COMPANY
Effect of Events on the Year 1 Accounting Equation
Assets
Liabilities
Stockholders' Equity
Event
Common
Retained
Earnings
9,400
Accounts
Cash
Receivable
Stock
Earned revenue
9,400 =
Collected accounts receivable
Ending balance
9,400
9,400
< Accounting Equation
Req A to D
>
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