Chris Holmes started a personal financial planning business when he accepted $36,000 cash as advance payment for
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a. Show the effects of the advance payment and revenue recognition on the 2013 financial statements using a horizontal statements model like the following one. In the Cash Flows column, use OA to designate operating activity, IA for investing activity, FA for financing activity, and NC for net change in cash. Use NA if the account is not affected.
b. How much revenue would Holmes recognize on the 2014 income statement?
c. What is the amount of cash flow from operating activities in2014?
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Related Book For
Fundamental financial accounting concepts
ISBN: 978-0078025365
8th edition
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward
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