The following information is drawn from the accounting records of Kristy Company: Divide the class into groups

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The following information is drawn from the accounting records of Kristy Company:

Year 2 Year 1 Revenue recognized on account Cash collections from customers Expenses incurred on account Cash payments t


Divide the class into groups of four or five students. Organize the groups into four sections. Assign each section of groups the following tasks:


Required

Group Tasks
Section 1 Groups—Prepare a Year 1 income statement and determine the balance in the accounts receivable account as of December 31, Year 1.
Section 2 Groups—Prepare a Year 2 income statement and determine the balance in the accounts receivable account as of December 31, Year 2.
Section 3 Groups—Prepare the Year 1 operating activities section of the statement of cash flows and determine the balance in the accounts payable account as of December 31, Year 1.
Section 4 Groups—Prepare the Year 2 operating activities section of the statement of cash flows and determine the balance in the accounts payable account as of December 31, Year 2.


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...
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Introductory Financial Accounting for Business

ISBN: 978-1260299441

1st edition

Authors: Thomas Edmonds, Christopher Edmonds

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