Clark Bell started a personal financial planning business when he accepted $57,0

Question

Clark Bell started a personal financial planning business when he accepted $57,000 cash as advance payment for managing the financial assets of a large estate. Bell agreed to manage the estate for a one-year period beginning June 1, Year 1.

Return to quest Bell started a personal financial planning business when he accepted $57,000 cash as advance payment for managing the ial assets of a large estate. Bell agreed to manage the estate for a one-year period beginning June 1, Year 1 w the effects of the advance payment and revenue recognition on the Year 1 financial statements using a horizontal statements given below. In the Statement of Cash Flows column, use OA to designate operating activity, IA for investing activity, FA for ing activity, NC for net change in cash and NA if the account is not affected. (Do not round intermediate calculations and round inal answers to nearest whole number. Enter any decreases to account balances and cash outflows with a minus sign.) Answer is not complete CLARK BELL PERSONAL FINANCIAL PLANNING Horizontal Statements Model for Year 1 Balance Sheet Income Statement Net Income Statement of Cash Flows Assets Cash 57,000 LiabilitiesStockholders Revenue |- Expense |= Event Unearned Revenue ul Retained Earnings Advance 57,000+ 23,750 OA ayment 3,250 33,250 3,250 33,250 OA 33,250 Revenue earned Totals 57,000 != 7,000+ 57,000 K Prev 3 of 4 Next >

Explanation / Answer

Horizontal statements :

CLARK BELL PERSONAL FINANCIAL PLANNING Horizontal statements model for year 1 Event Balance sheet Income statement Statement of cash flows Cash = Unearned revenue + Stockholder's equity Revenue - Expense = Net income Advance payment 57000 = 57000 + 0 0 - 0 = 0 57000 OA Revenue earned 0 = -33250 + 33250 33250 - 0 = 33250 0 NA Totals 57000 = 23750 + 33250 33250 - 0 = 33250 57000 OA

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