Year 31. Pald $2,700 to upgrade the computer system, which extended the total life of the system to six years. The salvage value did notchange.2. Pald $980 In fees to service the computers.3. Collected $34,790 In fees from clients.4. Recorded double-declining-balance depreciation for Year 3.Requireda. Use a horizontal financial statements model to show how each event affects the balance sheet, Income statement, and statement ofcash flows. More specifically, record the amounts of the events into the model. Also, in the Statement of Cash Flows column,classify the cash flows as operating activities (OA), Investing activities (IA), or financing activities (FA).b-1. Prepare Income statements for Year 1, Year 2, and Year 3.b-2. Prepare statements of changes in stockholders' equity for Year 1, Year 2, and Year 3.b-3. Prepare balance sheets for Year 1, Year 2, and Year 3.b-4. Prepare statements of cash flows for Year 1, Year 2, and Year 3.Req A Year 1 Req A Year 2 Req A Year 3EventYear 3Balance1.2.3.4.BalanceCashUse a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. Moramounts of the events into the model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing aactivities (FA).Note: Enter any decreases to account balances or cash outflows with a minus sign. Leave cells blank if no input is needed.Assets108,470 +(2,700) +(980) +34,790++137,580 +NC Net change in cashReg B1IncomeStatementBook Value ofEquipmentBalance Sheet9,360=2,700 =0 =0 =0 =12,060 =ACCOUNTING SOLUTIONS INCORPORATEDHorizontal Statements Model - Year 3Stockholders' EquityRetainedEarningsCommonStock+Req B2Statement ofChanges55,000 +0 +0 +0 ++55,000 +Req B3Balance Sheet60,8300(980)34,79094,640Revenue34,790Req B4Statement ofCash Flows01-101-101-134,790Income StatementExpenses = Net Income0 =0 =(980)=0 =|=(980)=00(980)34,790Statement ofCash Flows0(2,700) IA(980) OA34,790 OA33,810 31,110 NC*

It has been given that a double declining balance method is used and it is in the year 3 that by…

Req A Year 1 Req A Year 2 Req A Year 3 Event Year 3 Balance 1. 2. Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. Mo amounts of the events into the model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing a activities (FA). Note: Enter any decreases to account balances or cash outflows with a minus sign. Leave cells blank if no input is needed. Assets Cashi + 106,470 + (2,700) + (980)+ 34,790 3. 4. Balance 137,580 + NC Net change in cash + Req B1 Income Statement Book Value of Equipment Balance Sheet 9,360= 2,700 = 0 = 0 = 0 = 12,060 = ACCOUNTING SOLUTIONS INCORPORATED Horizontal Statements Model - Year 3 Stockholders' Equity Common Stock 55,000+ 0+ 0 + Req B2 Statement of Changes 0+ + 55,000+ Req 83 Balance Sheet Retained Revenue Earnings 60,830 0 (980) 34,790 94,640 0 0 0 34,790 34,790 Req B4 Statement of Cash Flows Income Statement I Expenses 0= 0= (980) 0= (980)= Net Income 0 0 (980) 34,790 Statement of Cash Flows (2,700) IA (980) OA OA 34,790 33,810 31,110 NC

Req A Year 1 Req A Year 2 Req A Year 3 Event Year 3 Balance 1. 2. Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. Mo amounts of the events into the model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing a activities (FA). Note: Enter any decreases to account balances or cash outflows with a minus sign. Leave cells blank if no input is needed. Assets Cashi + 106,470 + (2,700) + (980)+ 34,790 3. 4. Balance 137,580 + NC Net change in cash + Req B1 Income Statement Book Value of Equipment Balance Sheet 9,360= 2,700 = 0 = 0 = 0 = 12,060 = ACCOUNTING SOLUTIONS INCORPORATED Horizontal Statements Model - Year 3 Stockholders' Equity Common Stock 55,000+ 0+ 0 + Req B2 Statement of Changes 0+ + 55,000+ Req 83 Balance Sheet Retained Revenue Earnings 60,830 0 (980) 34,790 94,640 0 0 0 34,790 34,790 Req B4 Statement of Cash Flows Income Statement I Expenses 0= 0= (980) 0= (980)= Net Income 0 0 (980) 34,790 Statement of Cash Flows (2,700) IA (980) OA OA 34,790 33,810 31,110 NC

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Classify each of the following cash flows as operating, investing, or financing activities:
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(participation expected < You would find asset, liability, and equity accounts on which of the following statements? OA. Statement of cash flows B. Balance sheet OC. Statement of retained earnings OD. Income statement
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Provide iand Create nformation needed to create a Statement of Cash Flows using the Indirect Method. You MUST include: Net Income At least 3 items that go under operating activities. At least 2 items that go under investing activities. At least 2 items that go under financing activities. And 1 non-cash transaction.
Metlock Corporation's December 31, 2020 balance sheet showed the following: 6% preferred stock, $20 par value, cumulative, 35000 shares authorized; 19000 shares issued $ 380000 Common stock, $10 par value, 3,000,000 shares authorized; 1,950,000 shares issued, 1,920,000 shares outstanding 19500000 Paid-in capital in excess of par value - preferred stock 66000 Paid-in capital in excess of par value - common stock 27900000 Retained earnings 8950000 Treasury stock (30,000 shares) 525000 Metlock's total paid-in capital was $48371000. $47846000. $27946000. $47321000.
Activity 6: Answer Me Direction: Answer the following questions on a separate sheet of paper. 1. What is statement of cash flows? Briefly explain. 2. Explain the three activities under cash flows statement. 3. Discuss the differences between the direct and indirect method of presenting cash flows from operating activities.
Hello can I get some assistance? I also need stmt of changes, balance sheet, statement of cash flows. Thank you so much
On the statement of cash flows, the investing activities section would include a. cash paid for dividends Ob. cash paid for retirement of bonds payable Oc. cash received from the issuance of capital stock Od. cash received from the sale of investments
Required Record the events in a horizontal statement model. In the Cash Flow column, use OA to designate operating activity, IA for in activity, FA for financing activity, or NC for net change in cash. If the element is not affected by the event, leave the cell blank. every cell will require entry. Enter any decreases to account balances and cash outflows with a minus sign.)
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