Grant Company performed services on account for $80,000 in 2013. Grant collected $50,000 cash from accounts receivable

Question:

Grant Company performed services on account for $80,000 in 2013. Grant collected $50,000 cash from during 2013, and the remaining $30,000 was collected in cash during 2014.

Required
a. Record the 2013 transactions in T-accounts.
b. Record the 2013 transactions in a horizontal statements model like the following one:

c. Determine the amount of revenue Grant would report on the 2013 income statement.
d. Determine the amount of cash flow from operating activities Grant would report on the 2013 statement of cash flows.
e. Open a T-account for Retained Earnings, and close the 2013 Service Revenue account to the Retained Earnings account.
f. Record the 2014 cash collection in the appropriate T-accounts.
g. Record the 2014 transaction in a horizontal statements model like the one shown in Requirement b.
h. Assuming no other transactions occur in 2014, determine the amount of net income and the net cash flow from operating activities for2014.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...