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
