Clark Bell started a personal financial planning business when he accepted a $67,000 cash advance to manage
Question:
Clark Bell started a personal financial planning business when he accepted a $67,000 cash advance to manage the financial assets of a large estate. Bell has agreed to manage the estate for a period of one year beginning June 1, 2016.
to. Show the effects of prepayment and revenue recognition on the 2016 financial statements using a horizontal statement model shown below. In the Cash Flows column, use OA to designate operating activity, IA for investing activity, FA for financing activity, NC for net cash change, and NA if the account is unaffected. (Do not round intermediate calculations and round your final answers to the nearest whole number. Enter any decrease in account balances and cash outflows with a minus sign.)
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b. | How much revenue would Bell recognize in the 2017 income statement? (Do not round intermediate calculations and round your final answer to the nearest whole number.) |
C. | What is the amount of cash flow from operating activities in 2017? |
Survey of Accounting
ISBN: 978-1259631122
5th edition
Authors: Thomas Edmonds, Christopher Edmonds, Philip Olds, Frances McNair, Bor Yi Tsay