Golden Manufacturing Company started operations by acquiring$142,000 cash from the issue of common stock. On January 1, 2018,the company purchased equipment that cost $132,000 cash, had anexpected useful life of five years, and had an estimated salvagevalue of $13,200. Golden Manufacturing earned $94,700 and $68,080of cash revenue during 2018 and 2019, respectively. GoldenManufacturing uses double-declining-balance depreciation.
Required
Record the purchase in a horizontal statements model.
b-1. Prepare an income statements for 2018 and2019. Use a vertical statements format.
b-2. Prepare a balance sheets for 2018 and2019. Use a vertical statements format.
b-3. Prepare a statements of cash flows for2018 and 2019. Use a vertical statements format.
