Fun in the Sun Incorporated operates a beach chair rental service in south Florida. The company...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Fun in the Sun Incorporated operates a beach chair rental service in south Florida. The company experienced the following events in its first year of operations: 1. Issued $102,000 of common stock for cash. 2. Provided $72,000 of rental services on account. 3. Collected $29,800 cash from accounts receivable., 4. Adjusted the accounting records to reflect uncollectible accounts expense for the year. The company estimates that 10 percent of the ending accounts receivable balance will be uncollectible. Required: Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. More specifically, record the amounts of the events into the model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). The first transaction is shown as an example. Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed. Event Number Assets Cash + 1. 2. 3. 4. 102,000+ + + Total NC Balance Sheet =1 Liabilities + Stockholders' Equity Net Realizable Value of Accounts Receivable + 102,000+ = Net change in cash Income Statement Accounts Payable + Common Stock + Retained Revenue Earnings Expenses Net Income Statement of Cash Flows + 102,000 + 102,000 FA + + + II +-+ + + 0 = 0+ 102,000 + 0 O 0 102,000 *NC Fun in the Sun Incorporated operates a beach chair rental service in south Florida. The company experienced the following events in its first year of operations: 1. Issued $102,000 of common stock for cash. 2. Provided $72,000 of rental services on account. 3. Collected $29,800 cash from accounts receivable., 4. Adjusted the accounting records to reflect uncollectible accounts expense for the year. The company estimates that 10 percent of the ending accounts receivable balance will be uncollectible. Required: Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. More specifically, record the amounts of the events into the model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). The first transaction is shown as an example. Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed. Event Number Assets Cash + 1. 2. 3. 4. 102,000+ + + Total NC Balance Sheet =1 Liabilities + Stockholders' Equity Net Realizable Value of Accounts Receivable + 102,000+ = Net change in cash Income Statement Accounts Payable + Common Stock + Retained Revenue Earnings Expenses Net Income Statement of Cash Flows + 102,000 + 102,000 FA + + + II +-+ + + 0 = 0+ 102,000 + 0 O 0 102,000 *NC
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
(ABC analysis) Consider the following list of retail items sold in a Greensboro Museum gift shop. Item Annual Volume Average Profit per Item Greeting Cards 3870 $0.40 T-shirts 1550 1.25 Men's jewelry...
-
Compute the total and annual returns on the described investment. FiveFive years after buying 1 0 0 shares of XYZ stock for $ 6 0 per share, you sell the stock for $ 9 5 0 0 . Question content area...
-
A critical path within a project network is defined by that path that has the greatest slack times for each of the activities. Review Later True False
-
In Problems, assume that the populations are normally distributed and that independent sampling occurred. (a) Test the hypothesis that 1 2 at the a = 0.1 level of significance for the given sample...
-
Use the following bank statement and T- account to identify outstanding checks that should be included in the May 31 bank reconciliation. BANK STATEMENT Date Checks Other Balance 200 240 90 70 255...
-
In 2014, Sherri, a single taxpayer, had $3,600 in state tax withheld from her paycheck. She properly deducted that amount on her 2014 tax return as an itemized deduction that she qualified for, thus...
-
The following summarized data are available on three job-cost records of Weeks Company, a manufacturer of packaging equipment: The companys fiscal year ends on May 31. Factory overhead is applied as...
-
Manasee Atre is an award-winning innovator who makes educational toys for preschool children. Manasees company, which she whimsically named Pumpkin Patch, makes plastic pieces that can be assembled...
-
Which of the following taxpayers may potentially qualify for the Retirement Savings Contributions Credit (Saver?s Credit)? (Assume that all are over the age of 18, not claimed as a dependent on...
-
Solve these below uestions, E. Prepare an overhead budget for July, August and September and in total for the quarter. . Prepare a selling and administrative expenses budget for July, August and...
-
Watch the two videos from Shakespears in Love https://youtu.be/WydbcNQpN7Q At the beginning of the movie we see Mr. Henslow being dragged away by Mr. Fennyman and his men over a debt. Without...
-
What revenue categories do you think needs to be added to the master chart of accounts to reflect the new economy?
-
Watch the video on the investigation of the homicide to complete the following sections on the case: 1. Write the background information on your case. Explain what happened? Make sure to identify the...
-
On June 1 of the current year, Pamela Schatz established a business to manage rental property. She completed the following transactions during June: Opened a business bank account with a deposit of $...
-
Using the Master Production Schedule grid below, calculate the Projected Available Balance for each Quarter and determine what quarter(s) require a Master Production Schedule receipt. + Beginning...
-
Astro Industries of Minneapolis, Minnesota, makes weekly shipments to 5 customers in the Dallas area. Each customer's order weighs, on average, 2,500 pounds. A direct truck shipment from Minneapolis...
-
The baseball player A hits the ball from a height of 3.36 ft with an initial velocity of 34.8 ft/s. 0.14 seconds after the ball is hit, player B who is standing 15 ft away from home plate begins to...
-
When a team of people is able to achieve more than what its members could by working individually, this is called ____________. (a) distributed leadership (b) consensus (c) team viability (d) synergy
-
Which statement about self-managing teams is correct? (a) They can improve performance but not satisfaction. (b) They should have limited decision-making authority (c) They should operate without any...
-
Members of a team tend to become more motivated and better able to deal with conflict during the ____________ stage of team development. (a) forming (b) norming (c) performing (d) adjourning
Study smarter with the SolutionInn App