ucation.com/flow/connect.html mework Help Save &Exit Check my w Holloway Company
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ucation.com/flow/connect.html mework Help Save &Exit Check my w Holloway Company earned $9,100 of service revenue on account during Year 1. The company collected $7,735 cash from accounts recelvable during Year 1. Required Based on this information alone, determine the following for Holloway Company. (Hint: Record the events in general ledger accounts under an accounting equation before satisfying the requirements.) (Enter any decreases to account balances with a minus sign.) a. The balance of the accounts receivable that would be reported on the December 31, Year 1, balance sheet b. The amount of net income that would be reported on the Year 1 income statement c. The amount of net cash flow from operating activities that would be reported on the Year 1 statement of cash flows d. The amount of retained earnings that would be reported on the Year 1 balance sheet. Complete this question by entering your answers in the tabs below. AccountingReg A to D Equation Based on this information alone, determine the following for Holloway Company. (Hint: Record the events in general ledger accounts under an accounting equation before satisfying the requirements.) (Enter any decreases to account balances with a minus sign.) HOLLOWAY COMPANY Effect of Events on the Year 1 Accounting Equation ·Liabilities + Stockholders' Equity Prey 1 of 10 Next 23Explanation / Answer
The journal entries for year 1 in the books of Holloway Company:
a) The balance of the accounts receivable as on December 31, Year 1 is $1,135 (9100-7735).
b) The sales less any expenses incurred by the company is reported as it's net income. Since, no details is given about any expenses, the amount of net income reported on the Year 1 income statement is $9,100.
c) The net cash flows from operating activities includes the cash that the company receives carrying out it's ordinary business. In the given case, the cash received by the company during the year is $7,735. Hence, the net cash flows from operating activites that would be reported on the year 1 statement of cash flows is $7,735.
d) The net income of the company forms a part of the retained earnings shown in the balance sheet. Hence, the amount of retained earnings that would be reported on the Year 1 balance sheet is $9,100 (from part b).
Accounts Receivable A/c Dr. 9,100 To Service Revenue A/c 9,100 Cash/Bank A/c Dr 7,735 To Accounts Receivable A/c 7,735Related Questions
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