Raylan recelved a $$62,000$ cash advance payment on June $1,$ Year $1,$ for consulting services to be performed in the future. Services

were to be provided for a one$-$year term beginning June $1,$ Year $1.$

Required

a$.$ & b$.$ Record the June $1$ cash recelpt in T$-$accounts and the adjustment required as of December $31,$ Year $1.$

c$.$ Show the preceding transaction and related adjustment in a horizontal statements model.

d$.$ Determine the amount of net income on the Year $1$ income statement. What is the amount of net cash flow from operating activities

for Year $1?$

e$.$ What amount of liabilities would Raylan report on the Year $1$ balance sheet?

Answer is complete but not entirely correct.

Complete this question by entering your answers in the tabs below.

Record the June $1$ cash receipt in T$-$accounts and the adjustment required as of December $31,$ Year $1.$

Note: Do not round intermediate calculations. Round your answers to the nearest dollar amount.