VULCAN SERVICE COMPANY Accounting Equation for Year 1 Assets Equity Event Cash NRV Accounts Receivable Liabilities...

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VULCAN SERVICE COMPANY Accounting Equation for Year 1 Assets Equity Event Cash NRV Accounts Receivable Liabilities +Common + Stock 1. 0 + 91,000 0+ 0 + 2. 72,000 + (72,000) = 0 + 0 + 3. (36,000) + 0 = 0+ 0 + 4. 0+ + 0 + Balance 36,000 + 19,000 = 0 + 0 + Retained Account Titles for Retained Earnings Earnings 91,000 Service Revenue 0 (36,000) Salaries expense (2,193) Uncollectible accounts expense 52,807 Vulcan Service Company experienced the following transactions for Year 1, its first year of operations: 1. Provided $91,000 of services on account. 2. Collected $72,000 cash from accounts receivable. 3. Paid $36,000 of salaries expense for the year. 4. Adjusted the accounts using the following information from an accounts receivable aging schedule: Number of Days Past Percent Likely to Be Allowance Due Current Amount $ 7,800 Uncollectible Balance 0.01 0-30 4,500 0.05 31-60 2,000 0.10 61-90 2,200 0.20 Over 90 days 2,500 0.50 Required: a. Organize the transaction data in accounts under an accounting equation. b. Prepare the income statement for Vulcan Service Company for Year 1. c. What is the net realizable value of the accounts receivable at December 31, Year 1? VULCAN SERVICE COMPANY Accounting Equation for Year 1 Assets Equity Event Cash NRV Accounts Receivable Liabilities +Common + Stock 1. 0 + 91,000 0+ 0 + 2. 72,000 + (72,000) = 0 + 0 + 3. (36,000) + 0 = 0+ 0 + 4. 0+ + 0 + Balance 36,000 + 19,000 = 0 + 0 + Retained Account Titles for Retained Earnings Earnings 91,000 Service Revenue 0 (36,000) Salaries expense (2,193) Uncollectible accounts expense 52,807 Vulcan Service Company experienced the following transactions for Year 1, its first year of operations: 1. Provided $91,000 of services on account. 2. Collected $72,000 cash from accounts receivable. 3. Paid $36,000 of salaries expense for the year. 4. Adjusted the accounts using the following information from an accounts receivable aging schedule: Number of Days Past Percent Likely to Be Allowance Due Current Amount $ 7,800 Uncollectible Balance 0.01 0-30 4,500 0.05 31-60 2,000 0.10 61-90 2,200 0.20 Over 90 days 2,500 0.50 Required: a. Organize the transaction data in accounts under an accounting equation. b. Prepare the income statement for Vulcan Service Company for Year 1. c. What is the net realizable value of the accounts receivable at December 31, Year 1?