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ivanzaharov [21]
3 years ago
13

Yard Designs (YD) experienced the following events in Year 1, its first year of operation:

Business
1 answer:
shtirl [24]3 years ago
4 0

Answer:

a)

Assets         Liabilities       Equity      Revenue       Expenses     Net income

26,400        26,400              0                0                    0                   0

6,600          -6,600            6,000      6,600                 0               6,600

b) income statement

Revenues        $6,600

Expenses        <u>    $0     </u>

Net income     $6,600

balance sheet

Assets

Cash $26,400

Total assets                                                    $26,400

Liabilities

Deferred revenue $19,800

Total liabilities                        $19,800

Equity

Retained earnings $6,600

Total equity                             $6,600

Total liabilities + equity                                   $26,400

Statement of cash flows

Cash flows from operating activities:

Net income                            $6,600

Adjustments to net income

Increase in liabilities             $19,800

Total cash flows from operating activities $26,400

Cash flows from investing activities                $0

Cash flows from financing activities                $0

Net increase in cash                                    $26,400

Initial cash balance                                          $0

Ending cash balance                                  $26,400

c) revenue recognized during year 2 = $19,800

       

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False

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