Exercise 3-11B

c. Show the above transactions in a horizontal statements model like the following one: Assets Liab. + Equity Rev. Exp. Net Inc. Cash Flow Accts. Rec. + Supplies Accts. Pay Ret. Earn. = + d. Explain why the amounts of net income and net cash flow from operating activities differ. e. Record and post the required closing entries, and prepare a post-closing trial balance. Exercise 3-11B Recording unearned revenue and identifying its effect on financial statements James Jones received a $90,000 cash advance on March 1, Year 1, for legal services to be performed in the future. Services were to be provided for a one-year term beginning March 1, Year 1. Required a. Record the March 1 cash receipt in T-accounts. b. Record in T-accounts the adjustment required as of December 31, Year 1. c. Show the preceding transaction and related adjustment in a horizontal statements model like the following one: Assets Liab. + Equity Rev. Exp. Net Inc. Cash Flow ! c. Show the above transactions in a horizontal statements model like the following one: Assets Liab. + Equity Rev. Exp. Net Inc. Cash Flow Accts. Rec. + Supplies Accts. Pay Ret. Earn. = + d. Explain why the amounts of net income and net cash flow from operating activities differ. e. Record and post the required closing entries, and prepare a post-closing trial balance. Exercise 3-11B Recording unearned revenue and identifying its effect on financial statements James Jones received a $90,000 cash advance on March 1, Year 1, for legal services to be performed in the future. Services were to be provided for a one-year term beginning March 1, Year 1. Required a. Record the March 1 cash receipt in T-accounts. b. Record in T-accounts the adjustment required as of December 31, Year 1. c. Show the preceding transaction and related adjustment in a horizontal statements model like the following one: Assets Liab. + Equity Rev. Exp. Net Inc. Cash Flow