Holloway Company eamed $18,000 of service revenue on account during 2018. The co

Question

Holloway Company eamed $18,000 of service revenue on account during 2018. The company collected $14,000 cash from accounts Required Based on this information alone a. The balance of the accoun b. The amount of net income that would be reported on the 2018 income 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 ts receivable that would be reported on the December 31, 2018, balance sheet Complete this question by entering your answers in the tabs below. Accounting Reg A to D Based on this information alone, determine the following for Holloway Company. (Hints Record the events in general ledger under an accounting equation before satisfying the requirements.) (Enter any decreases to account balances with a minus si Effect of Events on the 2018 Assets Retained Ea Event Casht Req A to D >

Explanation / Answer

Events Cash + Accounts receivable = Liabilites + Common stock + Retained earnings Earned revenue 0 + 18000 = 0 + 0 + 18000 Collected Accounts receviables 14000 + (14000) = 0 + 0 + 0 Ending Balance 14000 + 4000 = 0 + 0 + 18000 a Accounts receiables 4000 b net income 18000 c Net cash from operating activities [18000-4000 increase in accounts receivable] 14000 d retained earnings 18000

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