Cordell Inc. experienced the following events in Year 1, its first year of operation:
Received $51,000 cash from the issue of common stock.
Performed services on account for $79,000.
Paid a $5,100 cash dividend to the stockholders.
Collected $57,000 of the accounts receivable.
Paid $51,000 cash for other operating expenses.
Performed services for $12,000 cash.
Recognized $2,100 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, or IA for investing activity. If the element is not affected by the event, leave the cell blank.
b. Based on your response to Requirement a, determine the amount of net income reported on the Year 1 income statement.
d. Based on your response to Requirement c, determine the amount of cash flow from operating activities reported on the Year 1 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 Year 1 balance sheet?
Transcribed Image Text:X Answer is not complete.
Complete this question by entering your answers in the tabs below.
Req B and D
Req A and C
to F
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, or IA for investing activity.
If the element is not affected by the event, leave the cell blank. (Enter cash outflows with a minus sign. Not all cells require
input.)
Event
Revenue
Expense
Statement of Cash Flows
1.
$
$ (51,000) X
FA
2.
79,000
3.
$
(5,100)
FA
4.
$
57,000
OA
5.
$
51,000
(51,000)
OA
6.
12,000
12,000
OA
7.
$
2,100
Transcribed Image Text:X Answer is not complete.
Complete this question by entering your answers in the tabs below.
Req B and D
to F
Req A and C
Based on your response to Requirement a and c, determine the amount of net income, cash flow from operating activities,
before- and after-closing balance in the service revenue account and balance of the Retained Earnings account reported on
the Year 1.
b.
Net income
Net cash flow from operating
d.
$
18,000
activities
Before-closing balance
е.
After-closing balance
f.
Balance of retained earnings
Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.
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