Golden Manufacturing Company started operations by acquiring $90,000 cash from the issue of common stock. On...

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Golden Manufacturing Company started operations by acquiring $90,000 cash from the issue of common stock. On January 1, Year 1, the company purchased equipment that cost $80,000 cash, had an expected useful life of five years, and had an estimated salvage value of $8,000. Golden Manufacturing earned $97,460 and $69,010 of cash revenue during Year 1 and Year 2, respectively. Golden Manufacturing uses double-declining-balance depreciation. Required a. Record the above transactions in a horizontal statements model. b-1. Prepare income statements for Year 1 and Year 2. b-2. Prepare balance sheets for Year 1 and Year 2. b-3. Prepare statements of cash flows for Year 1 and Year 2. Golden Manufacturing Company started operations by acquiring $90,000 cash from the issue of common stock. On January 1, Year 1, the company purchased equipment that cost $80,000 cash, had an expected useful life of five years, and had an estimated salvage value of $8,000. Golden Manufacturing earned $97,460 and $69,010 of cash revenue during Year 1 and Year 2, respectively. Golden Manufacturing uses double-declining-balance depreciation. Required a. Record the above transactions in a horizontal statements model. b-1. Prepare income statements for Year 1 and Year 2. b-2. Prepare balance sheets for Year 1 and Year 2. b-3. Prepare statements of cash flows for Year 1 and Year 2.

Answer rating: 100% (QA)

a Horizontal Statements Model Year 1 Year 2 Assets Cash 90000 Equipment 80000 Accumulated Depreciati... View the full answer