n3 Saved Help Save & Exlt Davos Company performed services on account for $55,50

Question

n3 Saved Help Save & Exlt Davos Company performed services on account for $55,500 in Year 1. Davos collected $44,400 cash from accounts recelvable during Year 1, and the remaining $11,100 was collected in cash during Year 2 Required a. e. & . Record the Year 1 transactions in T-accounts and close the Year 1 Service Revenue account to the Retained Earnings account Record the Year 2 cash collection in the appropriate T-accounts. 2921 b. & g.Show the Year 1 and Year 2 transactions in a horizontal statements model. c. Determine the amount of revenue Davos would report on the Year 1 income statement. d. Determine the amount of cash flow from operating activities Davos would report on the Year 1 statement of cash flows. h. Assuming no other transactións occur in Year 2. determine the amount of net income and the net cash fow from operating activities for Year 2 Complete this question by entering your answers in the tabs below Req A È and F Req B and G Req C Req D Req H Record the Year 1 transactions in T-accounts and close the Year 1 Service Revenue account to the Retained Earnings account. Record the Year 2 cash collection in the appropriate T-accounts. (Select "1, 2, or 3" for the transactions in the order they take place. Select ef for closing il Year 1 Year 1 End. Bal. Year 2 Year 2 Next > desmos-graph ...png desmos-graph... p.g

Explanation / Answer

a) T- Accounts Debit Credit Service revenue $55,500.00 Cash $44,400.00 Balance $11,100.00 Cash Dr Cr 2016 $44,400.00 Service revenue Dr CR 2016 $55,500.00 b)  Events        Assets                             +liabilities + Stockholders's equity                 Cash + A/c receivable          =                  Retatined earnings         Revenue - expense = net income 1)                          55500                     = 0         +        55500                           55,500 - 0           = 55,500 2)        44,400 +( 44,400)                  =         0      +         0                                                                              44,400                                                                                                                                                                        (cash flo) c) Amount of revenue - Davos would report on 2016 income statment = $55,500 d)Amount of cash flow from operating activities is $44,400 E) Retained Earnings DR CR - 2016 Service account $55,500 f) Cash Dr Cr To A/c recievable $11,100.00 g) Assets                                     = liabilties + Stcokholder's equity Cash + Account receivable = 11,100+(11,100)                  = 0                                                   11,100( cash flow) h) Net income will be nil whereas cash from operating activities will be $11,100

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