Homework Help is Here – Start Your Trial Now!
Business
Accounting
owboy Ice Cream (CIC) had the following events in the Year 1 fiscal year: 1. The company started when it acquired $17,000 cash by issuing common stock. 2. Purchased a new cooktop that cost $13,700O cash. 3. Earned $23,600 in cash revenue. 4. Paid $10,400 cash for salaries expense. 5. Adjusted the records to reflect the use of the cooktop. Purchased on January 1, Year 1, the cooktop has an expected useful life of four years and an estimated salvage value of $3,000. Use straight-line depreciation. The adjusting entry was made as of December 31, Year 1. Required a. Record the above transactions in a horizontal statements model. b. What amount of depreciation expense would CIC report on the Year 1 income statement? c. What amount of accumulated depreciation would CIC report on the December 31, Year 2, balance sheet? d. Would the cash flow from operating activities be affected by depreciation in Year 1?

owboy Ice Cream (CIC) had the following events in the Year 1 fiscal year: 1. The company started when it acquired $17,000 cash by issuing common stock. 2. Purchased a new cooktop that cost $13,700O cash. 3. Earned $23,600 in cash revenue. 4. Paid $10,400 cash for salaries expense. 5. Adjusted the records to reflect the use of the cooktop. Purchased on January 1, Year 1, the cooktop has an expected useful life of four years and an estimated salvage value of $3,000. Use straight-line depreciation. The adjusting entry was made as of December 31, Year 1. Required a. Record the above transactions in a horizontal statements model. b. What amount of depreciation expense would CIC report on the Year 1 income statement? c. What amount of accumulated depreciation would CIC report on the December 31, Year 2, balance sheet? d. Would the cash flow from operating activities be affected by depreciation in Year 1?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
100%
Hi, can I get some help with this? I also need B. C. And D. Thank you!
Cowboy Ice Cream (CIC) had the following events in the Year 1 fiscal year: 1. The company started when it acquired $17,000 cash by issuing common stock. 2. Purchased a new cooktop that cost $13,700 cash. 3. Earned $23,600 in cash revenue. 4. Paid $10,400 cash for salaries expense. 5. Adjusted the records to reflect the use of the cooktop. Purchased on January 1, Year 1, the cooktop has an expected useful life of four years and an estimated salvage value of $3,000. Use straight-line depreciation. The adjusting entry was made as of December 31, Year 1. Required a. Record the above transactions in a horizontal statements model. b. What amount of depreciation expense would ClC report on the Year 1 income statement? c. What amount of accumulated depreciation would CIC report on the December 31, Year 2, balance sheet? d. Would the cash flow from operating activities be affected by depreciation in Year 1? Complete this question by entering your answers in the tabs below. Reg A Reg B to D Record the above transactions in a horizontal statements model. (In the Cash Flow column, indicate whether the item is an operating activity (OA), an inve (IA), a financing activity (FA), or net change in cash (NC). If the element is not affected by the event, leave the dell blank. Enter any decreases to account cash outflows with a minus sign. Not all cells will require entry.) COWBOY ICE CREAM COMPANY Horizontal Statements Model Balance Sheet Income Statement Statement of Cash Flows Assets Equity Event Revenue Expense = Net Income Retained Common Stock BV Cash Equipment Earnings
Transcribed Image Text:Cowboy Ice Cream (CIC) had the following events in the Year 1 fiscal year: 1. The company started when it acquired $17,000 cash by issuing common stock. 2. Purchased a new cooktop that cost $13,700 cash. 3. Earned $23,600 in cash revenue. 4. Paid $10,400 cash for salaries expense. 5. Adjusted the records to reflect the use of the cooktop. Purchased on January 1, Year 1, the cooktop has an expected useful life of four years and an estimated salvage value of $3,000. Use straight-line depreciation. The adjusting entry was made as of December 31, Year 1. Required a. Record the above transactions in a horizontal statements model. b. What amount of depreciation expense would ClC report on the Year 1 income statement? c. What amount of accumulated depreciation would CIC report on the December 31, Year 2, balance sheet? d. Would the cash flow from operating activities be affected by depreciation in Year 1? Complete this question by entering your answers in the tabs below. Reg A Reg B to D Record the above transactions in a horizontal statements model. (In the Cash Flow column, indicate whether the item is an operating activity (OA), an inve (IA), a financing activity (FA), or net change in cash (NC). If the element is not affected by the event, leave the dell blank. Enter any decreases to account cash outflows with a minus sign. Not all cells will require entry.) COWBOY ICE CREAM COMPANY Horizontal Statements Model Balance Sheet Income Statement Statement of Cash Flows Assets Equity Event Revenue Expense = Net Income Retained Common Stock BV Cash Equipment Earnings
Reg A Reg B to D Record the above transactions in a horizontal statements model. (In the Cash Flow column, indicate whether the item is an operating activity (OA), an in (IA), a financing activity (FA), or net change in cash (NC). If the element is not affected by the event, leave the cell blank. Enter any decreases to accou cash outflows with a minus sign. Not all cells will require entry.) COWBOY ICE CREAM COMPANY Horizontal Statements Model Balance Sheet Income Statement Statement of Cash Assets Equity %3D Event Flows Retained Revenue Expense = Net Income Common Stock BV Cash +. Equipment Earnings 1. 2. 3. %3D %3D 4. %3D 5. %3D %3D Bal. 0 = 01 + Req B to D >
Transcribed Image Text:Reg A Reg B to D Record the above transactions in a horizontal statements model. (In the Cash Flow column, indicate whether the item is an operating activity (OA), an in (IA), a financing activity (FA), or net change in cash (NC). If the element is not affected by the event, leave the cell blank. Enter any decreases to accou cash outflows with a minus sign. Not all cells will require entry.) COWBOY ICE CREAM COMPANY Horizontal Statements Model Balance Sheet Income Statement Statement of Cash Assets Equity %3D Event Flows Retained Revenue Expense = Net Income Common Stock BV Cash +. Equipment Earnings 1. 2. 3. %3D %3D 4. %3D 5. %3D %3D Bal. 0 = 01 + Req B to D >
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Balance Of Payment
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS