1 Instructions for Solo Company 2 Year 1 3 1. Provided $4,000 of services on account....

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1 Instructions for Solo Company 2 Year 1 3 1. Provided $4,000 of services on account. 2. Collected $3,000 cash from accounts receivable. 3. Estimated uncollectible accounts expense to be 1.5% of Year 1 credit sales. Year 2 7 1. Wrote off $40 of accounts receivable that were deemed uncollectible. 8. 2. Provided $6,500 of services on account. 3. Collected $5,400 cash from accounts receivable. 10 4. Received $5 from an uncollectible account that had been previously written off. Solo reinstated the account. 11 5. Recorded the $5 cash received from the receivable reinstated in Event No. 4. 6. Estimated uncollectible accounts expense to be 1% of Year 2 credit sales, 12 13 Requirements 14 Record the events using the horizontal financial statements model under the titles of the affected accounts. 15 Record the initials "NA" under each heading not affected by a given event. Anchor Maching Efects of Events of Financal Statement of Year One Balance Sheet Assets Stockholder Equity Common Stock Retained Eanings Revenue Liabiines Income Statement Events Cash Accounts Receivable Accounts Payable Expenses Net Income Statement of Cash Flow $4,000.00 $4,000.00 $4,000.00 2 $3,000.00 -$3,000.00 $3.000.00 3 $0.00 s S0.00 $4.000.00 $0.00 si $3.000 00 Balance Total Assets $3,000.00 $1.000.00 $4,000.00 $4.000.00 s $0.00 Total LSE Solo Company Eflects of Events of Financail Satement of Year 2 Balance Sheet Assete Siockholder Euity Liabiten Accounta Payable Common Skock Retained Eamings Revenue Income Sement Events Cash Accounts Recelvable Kxpenses Net income Statement of Cash Flow Beginning Balance 21 4 Balance Total Assets Total L+SE $0.00 1 Instructions for Solo Company 2 Year 1 3 1. Provided $4,000 of services on account. 2. Collected $3,000 cash from accounts receivable. 3. Estimated uncollectible accounts expense to be 1.5% of Year 1 credit sales. Year 2 7 1. Wrote off $40 of accounts receivable that were deemed uncollectible. 8. 2. Provided $6,500 of services on account. 3. Collected $5,400 cash from accounts receivable. 10 4. Received $5 from an uncollectible account that had been previously written off. Solo reinstated the account. 11 5. Recorded the $5 cash received from the receivable reinstated in Event No. 4. 6. Estimated uncollectible accounts expense to be 1% of Year 2 credit sales, 12 13 Requirements 14 Record the events using the horizontal financial statements model under the titles of the affected accounts. 15 Record the initials "NA" under each heading not affected by a given event. Anchor Maching Efects of Events of Financal Statement of Year One Balance Sheet Assets Stockholder Equity Common Stock Retained Eanings Revenue Liabiines Income Statement Events Cash Accounts Receivable Accounts Payable Expenses Net Income Statement of Cash Flow $4,000.00 $4,000.00 $4,000.00 2 $3,000.00 -$3,000.00 $3.000.00 3 $0.00 s S0.00 $4.000.00 $0.00 si $3.000 00 Balance Total Assets $3,000.00 $1.000.00 $4,000.00 $4.000.00 s $0.00 Total LSE Solo Company Eflects of Events of Financail Satement of Year 2 Balance Sheet Assete Siockholder Euity Liabiten Accounta Payable Common Skock Retained Eamings Revenue Income Sement Events Cash Accounts Recelvable Kxpenses Net income Statement of Cash Flow Beginning Balance 21 4 Balance Total Assets Total L+SE $0.00

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Answer Year1 Effects of Events of Financial Statement of Year One Balance She... View the full answer