Ross Company performed services on account for $30,000 in 2016, its first year of operations. Ross collected $24,000 cash from accounts receivable during 2016 and the remaining $6,000 in cash during...

Ross Company performed services on account for $30,000 in 2016, its first year of operations. Ross collected $24,000 cash from accounts receivable during 2016 and the remaining $6,000 in cash during 2017. Required a. Record the 2016 transactions in T-accounts. b. Record the 2016 transactions in a horizontal statements model like the following one: c. Determine the amount of revenue that would be reported on the 2016 income statement. d. Determine the amount of cash flow from operating activities that would be reported on the 2016 statement of cash flows. e. Open a T-account for Retained Earnings, and close the 2016 Service Revenue account to the Retained Earnings account. f. Record the 2017 cash collection in the appropriate T-accounts. g. Record the 2017 transaction in a horizontal statements model like the one shown in Requirement b. h. Assuming no other transactions occur in 2017, determine the amount of net income and the net cash flow from operating activities for 2017. View Solution:

Ross Company performed services on account for 30 000 in 2016