Davos Company performed services on account for $50,000 in Year 1. Davos collected $40,000 cash from...

 

Transcribed Image Text:

Davos Company performed services on account for $50,000 in Year 1. Davos collected $40,000 cash from accounts receivable during Year 1, and the remaining $10,000 was collected in cash during Year 2. Required a. e. & f. Record the Year 1 transactions in T-accounts and close the Year 1 Service Revenue account to the Retained Earnings account. Record the Year 2 cash collection in the appropriate T-accounts. b. & g. Show the Year 1 and Year 2 transactions in a horizontal statements model. c. Determine the amount of revenue Davos would report on the Year 1 income statement. d. Determine the amount of cash flow from operating activities Davos would report on the Year 1 statement of cash flows. h. Assuming no other transactions occur in Year 2, determine the amount of net income and the net cash flow from operating activities for Year 2. Davos Company performed services on account for $50,000 in Year 1. Davos collected $40,000 cash from accounts receivable during Year 1, and the remaining $10,000 was collected in cash during Year 2. Required a. e. & f. Record the Year 1 transactions in T-accounts and close the Year 1 Service Revenue account to the Retained Earnings account. Record the Year 2 cash collection in the appropriate T-accounts. b. & g. Show the Year 1 and Year 2 transactions in a horizontal statements model. c. Determine the amount of revenue Davos would report on the Year 1 income statement. d. Determine the amount of cash flow from operating activities Davos would report on the Year 1 statement of cash flows. h. Assuming no other transactions occur in Year 2, determine the amount of net income and the net cash flow from operating activities for Year 2.

Answer rating: 100% (QA)

Question Assets Cash Account receivable Transaction Debit Credit Balan... View the full answer