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Golden Manufacturing Company started operations by acquiring $143,000 cash from the issue of common stock....

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Accounting

Golden Manufacturing Company started operations by acquiring $143,000 cash from the issue of common stock. On January 1, Year 1, the company purchased equipment that cost $133,000 cash, had an expected useful life of five years, and had an estimated salvage value of $13,300. Golden Manufacturing earned $90,490 and $68,830 of cash revenue during Year 1 and Year 2, respectively. Golden Manufacturing uses double-declining-balance depreciation.
Required
Record the above transactions in a horizontal statements model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA).
Prepare income statements, balance sheets, and statements of cash flows for Year 1 and Year 2. Use a vertical statements format.

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