The following events apply to San Bernadino Co for the 2021 fiscal year: 1 Received 2 Paid $136,500 cash from the issue of common stock. $65,000 cash for a new for Vehicle. $44,200 cash for operating expenses. $201,500 in cash revenue. 3 Paid 4 Earned. 5 Paid $94,250 cash for salaries expense. 6 Adjusted the records to reflect the use of the Vehicle. The vehicle, purchased on January 1, 2021, has an expected useful life of five years and an estimated salvage value of Use straight-line depreciation. The depreciation transaction was made as of December 31, 2021. a. C. d. REQUIRED Record the above transactions in a horizontal statements model What amount of depreciation expense would San Bernadino Co report on the 2021 Income statement? What amount of accumulated depreciation would San Bernadino Co report on the December 31, 2021, balance sheet? Would the cash flow from operating activities be affected by depreciation in 2021? $22,7

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The following events apply to San Bernadino Co for the 2021 fiscal year:
$136,500 cash from the issue of common stock.
$65,000 cash for a new for Vehicle.
$44,200 cash for operating expenses.
$201,500 in cash revenue.
REQUIRED
a. Record the above transactions in a horizontal statements model
What amount of depreciation expense would San Bernadino Co report on the 2021 income
statement?
What amount of accumulated depreciation would San Bernadino Co report on the
December 31, 2021, balance sheet?
Would the cash flow from operating activities be affected by depreciation in 2021?
a
b.
C.
1 Received
2 Paid
3 Paid
4 Earned
5 Paid
$94,250 cash for salaries expense.
6 Adjusted the records to reflect the use of the Vehicle. The vehicle, purchased on January 1,
2021, has an expected useful life of five years and an estimated salvage value of
Use straight-line depreciation. The depreciation transaction was made as of December 31, 2021.
d.
$22,750
Transcribed Image Text:The following events apply to San Bernadino Co for the 2021 fiscal year: $136,500 cash from the issue of common stock. $65,000 cash for a new for Vehicle. $44,200 cash for operating expenses. $201,500 in cash revenue. REQUIRED a. Record the above transactions in a horizontal statements model What amount of depreciation expense would San Bernadino Co report on the 2021 income statement? What amount of accumulated depreciation would San Bernadino Co report on the December 31, 2021, balance sheet? Would the cash flow from operating activities be affected by depreciation in 2021? a b. C. 1 Received 2 Paid 3 Paid 4 Earned 5 Paid $94,250 cash for salaries expense. 6 Adjusted the records to reflect the use of the Vehicle. The vehicle, purchased on January 1, 2021, has an expected useful life of five years and an estimated salvage value of Use straight-line depreciation. The depreciation transaction was made as of December 31, 2021. d. $22,750
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