32Freg 384 points on the b The amount of net income that wou

3%2Freg 3.84 points on the b. The amount of net income that would be reported on the 2018 income statement c The amount of net cash flow from operating activities that would be reported on the 2018 statement of cash flows. d. The amount of retained earnings that would be reported on the 2017 balance sheet NY E 1 of 26 Next >

Solution

HOLLOWAY COMPANY Effect of Events on the 2018 Accounting Equation Assets = Liabilities + Stockholer\'s Equity Events Cash + Accounts Receivable = + Common Stock + Retained earnngs Revenue earned +                8,500 = + +          8,500 Collected accounts receivable          7,225 +             (7,225) = + + Ending balance          7,225 +                1,275 =                -   +                -   +          8,500 Explanation: when services are performed on account, A/R balance is increased and when its collected its decreased to the extend collected. (a) 1275 A/R (b) 8500 Net Income (c ) 7225 Net cash flow (d) 8500 Retained earnings Note: year given in subpart (d) is 2017, seems to be erroneously written instead of 2018 and answer is given based on 2018 For 2017 data is not available.