Please i need help. Put your answer in table form to understand better. Thanks C
ID: 2328855 • Letter: P
Question
Please i need help. Put your answer in table form to understand better. Thanks
Cordell Inc. experienced the following events in 2018, its first year of operation: 1. Received $50,000 cash from the issue of common stock. 2. Performed services on account for $78,000. 3. Paid a $5,000 cash dividend to the stockholders. 4. Collected $56,000 of the accounts receivable. 5. Paid $50,000 cash for other operating expenses. 6. Performed services for $17,500 cash. 7. Recognized $2,000 of accrued utilities expense at the end of the year Required a, & c. Identify the events that result in revenue or expense recognition and those which affect the statement of cash flows. In the Statement of Cash Flows column, use OA to designate operating activity, FA for financing activity, IA for investing activity and NA to indicate the element is not affected by the event. b. Based on your response to Requirement a, determine the amount of net income reported on the 2018 income statement. d. Based on your response to Requirement C, determine the amount of cash flow from operating activities reported on the 2018 statement of cash flows. e. What is the before-and after-closing balance in the service revenue account? f. What is the balance of the retained earnings account that appears on the 2018 balance sheet?Explanation / Answer
Particulars Income Or Expense cash flows a & C 1 Received $50000 cash from the issue of stock does not effect income or expense cash Flow from financing activities 2.Performed services on Income since services are rendered Does not effect cash flows account $78000 Paid a $5000 cash dividend Dividends are an appropriation Cash flow from financing to stockholders of profit .It will not affect the income or activities expense Collected $56000 of the accounts does not affect income or expense Cash Flow from Operating receivable activities Paid $50000 cash from Expense since expense incurred cash Flow from operating other operating expenses activities Performed $17500 services Income since services are rendered cash Flow from operating in cash activities Recognized $2000 of accrued Expense since expense incurred Does not effect cash flows utilities expense at the end of the yr b Income Statement reported for 2018 Sales Services Performed Services $78,000 Performed Services $17,500 Total Revenue $95,500 less Operating exp Operating Exp $50,000 accrued utilities $2,000 Total Expense $52,000 Net Income $43,500 d cash flow statement for the yr ended 2018 Cash flow from opearting activties Net Income $43,500 Add :Adjustments to change into cash basis operating exp paid ($50,000) Services rendered $17,500 Accrued utlities recignized ($2,000) $9,000 Changes in W C Decrease in Accounts $56,000 receivable Net cash flow from $65,000 operating activties e Service Revenue Account Balance Account Title Dr Cr Dr Cr Sales $78,000 Sales $17,500 $95,500 cash $56,000 $39,500 f balance in the retained earnings for 2018 Retained earnings Net Income during the period $43,500 Less cash dividends $5,000 Retained earnings at end $38,500