7 2b 2 Bal 1 Bal 3 Bal 4 Bal Cash 80 000 3 48 000 Accounts Receivable 96 000 2 16 000 Allow For Doubt Accts 4 Bal Service Revenue 1 Bal Salaries Expense 32 000 32 000 Uncoll Accts Expense 1 600 1 600 32 000 80 000 1 600 1 600 96 000 96 000 c Michelle s Accounting Service Income Statement For the Year Ended December 31 2013 Service revenue 96 000 Operating expenses Salaries expense 32 000 Uncoll Accts Exp 1 600 Total operating expenses 33 600 Net income 62 400 Michelle s Accounting Service Balance Sheet As of December 31 2013 Assets Cash 48 000 Accounts Receivable 16 000 Less Allow for doubt acc 1 600 14 400 Total assets 62 400 Liabilities 0 Stockholders equity Retained earnings 62 400 Total stockholders equity 62 400 Total Liab and SE 62 400 Michelle s Accounting Service Statement of Cash Flows For the Year Ended December 331 2013 Cash flows from OA 80 000 Inflow from customers 80 000 Outflow for expenses 32 000 Net cash flow from OA 48 000 Cash flows from IA 0 Cash flows from FA 0 Net change in cash 48 000 Add Beg cash bal 0 Ending cash bal 48 000 7 5a Event 1 2 3 4 Event 1 2 3 4 Cash NA NA NA Rev NA NA NA A Rec NA Exp NA NA NA Allow NA NA Net Inc NA NA b Cash 62 000 2 Accounts Receivable 68 000 2 3 Service Revenue 1 Allowance for doubtful accts 500 4 Uncollectible accts expense 1360 1 3 4 62 000 500 68 000 1360 7 7a 2 Cash 72 000 3 39 000 Liab NA NA NA NA NA NA NA Ret Earn NA NA Cash Flow NA OA NA NA Bal 1 Bal 3 4 Bal 3 Bal 33 000 Accounts Receivable 86 000 2 14 000 Service Revenue 1 Allowance for doubtful accts 500 4 Bal Uncollectible accts expense 1 625 1 625 Salaries Expense 39 000 39 000 72 000 86 000 1 625 1 625 b Tyler Service CO Income Statement For the Year Ended December 31 2013 Service Revenue 86 000 Operating expenses Salaries expense 39 000 Uncoll accts exp 1 625 Total operating expenses 40 625 Net income 45 375 c 12 375 7 8a 2 3 Bal 1 Bal cl Cash 22 000 4 65 000 63 000 Accounts Receivable 80 000 3 15 000 Allow for Doubt Accts 5 Bal Retained Earnings 24 750 cl Bal 24 000 65 000 750 750 102 000 77 250 cl 4 Bal Bal 5 Bal Bal Service Revenue 1 2 Bal 102 000 Bal Salaries Expense 24 000 24 000 cl 0 Uncoll Accts Expense 750 750 cl 0 80 000 22 000 102 000 0 24 000 750 b FAELLO INC Income Statement For the Year Ended December 31 2013 Service revenue 102 000 Operating expenses Salaries expense 24 000 Uncoll Accts Exp 750 Total Oper Exp 24 750 Net income 77 250 FAELLO INC Statement of Changes in SE For the Year Ended December 31 2013 Beg RE 0 Add Net income 77 250 Ending RE 77 250 Total SE 77 250 FAELLO INC Balance Sheet As of December 31 2013 Assets Cash 63 000 Accoutns rec 15 000 Less Allow for Doubt Accts 750 14 250 Total assets 77 250 Liabilities 0 Stockholder s equity RE 77 250 Total SE 77 250 Total liab and SE 77 250 FAELLO INC Statement of Cash Flows For the Year Ended Decmeber 31 2013 Cash flows from OA Inflow from customers 87 000 Outflow for expenses 24 000 Net cash flow from OA 63 000 Cash flows from IA 0 Cash flows from FA 0 Net change in cash 63 000 Add beg cash bal 0 Ending cash bal 63 000 Net realizable value 14 250 d Bal 3 4 Bal Bal 2 Bal 1 Cash 63 000 5 15 000 90 000 133 000 Accounts Receivable 15 000 1 95 000 4 19 380 Allow for Doubt Accts Bal 6 620 Bal Retained Earnings Bal Service Revenue 35 000 620 90 000 750 839 969 77 250 2 3 5 Bal 6 Bal Bal Salaries Expense 35 000 35 000 Uncoll Accts Expense 839 839 95 000 15 000 110 000 FAELLO INC Income Statement For the Year Ended December 31 2014 Service revenue 110 000 Operating expenses Salaries expense 35 000 Uncoll Accts Exp 839 Total Oper Exp 35 839 Net income 74 161 FAELLO INC Statement of Changes in SE For the Year Ended December 31 2014 Beg RE 77 250 Add Net income 74 161 Ending RE 151 411 Total SE 151 411 FAELLO INC Balance Sheet As of December 31 2014 Assets Cash 133 000 Accoutns rec 19 380 Less Allow for Doubt Accts 969 18 411 Total assets 151 411 Liabilities 0 Stockholder s equity RE 151 411 Total SE 151 411 Total liab and SE 151 411 FAELLO INC Statement of Cash Flows For the Year Ended Decmeber 31 2014 Cash flows from OA Inflow from customers 105 000 Outflow for expenses 35 000 Net cash flow from OA 70 000 Cash flows from IA 0 Cash flows from FA 0 Net change in cash 70 000 Add beg cash bal 63 000 Ending cash bal 133 000 Net realizable value 18 411 7 21a a 750 b 18 750 c Cash used in investing activities 18 000 d 150 e 18 900 f Cash provided by investing activities 18 000 Cash provided by operating activities 900 g 900 7 18a b Uncoll acct exp 3 630 Net realizable value 97 320 7 24a LEGG COMPANY Income Statement For the Year Ended December 31 2013 Sales revenue 350 000 Cost of goods sold 225 000 Gross profit 125 000 Operating items Operating expenses 45 000 Salaries expenses 61 200 Uncoll acc exp 9 600 Total operating expenses 115 800 Operating income 9 200 Non operating items Interest revenue 12 000 Net income 21 200 LEGG COMPANY Balance Sheet As of December 31 2013 Assets Cash Accts Receivable Less Allow For doubt accts Supplies Land Prepaid rent Merchandise Inventory Notes Receivable Interest Receivable Total assets Liab and SE Liabilities Unearned revenue Accounts payable Salaries payable Total liabilities Stockholders equity Common Stock Retained earnings Total SE Total liab and SE 16 700 92 000 6500 85 000 4 500 45 000 16 000 105 000 15 000 2 100 289 800 40 000 48 000 10 500 98 500 60 000 131 30 0 191 300 289 800