Rosie Dry Cleaning was started on January $1,$ ?Year $1.$ ?It experienced the following events during its first two years of operation:

Events Affecting Year $1$

Provided $$32,680$ ?of cleaning services on account.

Collected $$26,144$ ?cash from accounts receivable.

Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be $1$ ?percent of the cleaning revenue on account.

Events Affecting Year $2$

Wrote off a $$245$ ?account receivable that was determined to be uncollectible.

Provided $$38,138$ ?of cleaning services on account.

Collected $$33,752$ ?cash from accounts receivable.

Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be $1$ ?percent of the cleaning revenue on account.

Required:

Organize the transaction data in accounts under an accounting equation for each year.

Determine the following amounts:

$(1)$ ?Net income for Year $1.$

$(2)$ ?Net cash flow from operating activities for Year $1.$

$(3)$ ?Balance of accounts receivable at the end of Year $1.$

$(4)$ ?Net realizable value of accounts receivable at the end of Year $1.$

Determine the following amounts:

$(1)$ ?Net income for Year $2.$

$(2)$ ?Net cash flow from operating activities for Year $2.$

$(3)$ ?Balance of accounts receivable at the end of Year $2.$

$(4)$ ?Net realizable value of accounts receivable at the end of Year $2.$Complete this question by entering your answers in the tabs below.

Transcribed Image Text:

Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B Req C Organize the transaction data in accounts under an accounting equation for Year 1. Note: Enter any decreases to account balances with a minus sign. Not all cells require input. ROSIE DRY CLEANING Accounting Equation for Year 1 Event 1. Assets NRV Balance Sheet Cash + Accounts Receivable + 2. 3. Balance 0+ +++ = || | || | || Equity Liabilities + Account Titles for Retained Earnings Retained + + + 0 = 0+ Req A1 Earnings 0 Req A2 Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B Req C Organize the transaction data in accounts under an accounting equation for Year 1. Note: Enter any decreases to account balances with a minus sign. Not all cells require input. ROSIE DRY CLEANING Accounting Equation for Year 1 Event 1. Assets NRV Balance Sheet Cash + Accounts Receivable + 2. 3. Balance 0+ +++ = || | || | || Equity Liabilities + Account Titles for Retained Earnings Retained + + + 0 = 0+ Req A1 Earnings 0 Req A2

Answer rating: 100% (QA)

To organize the transaction data in accounts under an accounting equation for each year we will crea... View the full answer