Golden Manufacturing Company started operations by acquiring $89,000 cash from the issue of common stock. On January 1, Year 1, the company purchased equipment that cost $79,000 cash, had an expected useful life of five years, and had an estimated salvage value of $7,900. Golden Manufacturing earned $89,480 and $64,990 of cash revenue during Year 1 and Year 2, respectively. Golden Manufacturing uses double-declining-balance depreciation. Required a. Record the above transactions in a horizontal statements model. b-1. Prepare income statements for Year 1 and Year 2. b-2. Prepare balance sheets for Year 1 and Year 2. b-3. Prepare statements of cash flows for Year 1 and Year 2.

Golden Manufacturing Company started operations by acquiring $89,000 cash from the issue of common stock. On January 1, Year 1, the company purchased equipment that cost $79,000 cash, had an expected useful life of five years, and had an estimated salvage value of $7,900. Golden Manufacturing earned $89,480 and $64,990 of cash revenue during Year 1 and Year 2, respectively. Golden Manufacturing uses double-declining-balance depreciation. Required a. Record the above transactions in a horizontal statements model. b-1. Prepare income statements for Year 1 and Year 2. b-2. Prepare balance sheets for Year 1 and Year 2. b-3. Prepare statements of cash flows for Year 1 and Year 2.

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets

Section: Chapter Questions

Problem 1AFE

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