80.2K

Verified Solution

Link Copied!

Unit - Chapter 1 Homework Assignment Listed below are several transactions that took place during the first two years of operations for the law firm of Pete, Pete, and Roy. Year 1 Year 2 $182,000 $232,000 154,800 184,000 Swinged Amounts billed to clients for services rendered Cash collected from clients Cash disbursements Salaries paid to employees for services rendered during the year Utilities Purchase of insurance policy 84,000 27,090 58,200 94,000 34,000 In addition, you learn that the firm incurred utility costs of $32,000 in year 1, that there were no liabilities at the end of year 2. no anticipated bad debts on receivables, and that the insurance policy covers a three-year period. Required: 1. & 3. Calculate the net operating cash flow for years 1 and 2 and determine the amount of receivables from clients that the firm would show in its year 1 and year 2 balance sheets prepared according to the accrual accounting model 2. Prepare an income statement for each year according to the accrual accounting model. Complete this question by entering your answers in the tabs below. Req 1 and 3 Reg 2 Prepare an income statement for each year according to the accrual accounting model. PETE, PETE, AND ROY Income Statements Yeart Year 2 Expenses Salaries Us Net Income loss)

Answer & Explanation Solved by verified expert

See Answer