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Golden Manufacturing Company started operations by acquiring $111,000 cash from the issue of common stock. On January 1, 2018, the company purchased equipment that cost $101,000 cash, had an expected useful life of five years, and had an estimated salvage value of $10,100. Golden Manufacturing earned $99,310 and $69,480 of cash revenue during 2018 and 2019, respectively. Golden Manufacturing uses double-declining-balance depreciation.

Required

Record the purchase in a horizontal statements model.

b-1. Prepare an income statements for 2018 and 2019. Use a vertical statements format.

b-2. Prepare a balance sheets for 2018 and 2019. Use a vertical statements format.

b-3. Prepare a statements of cash flows for 2018 and 2019. Use a vertical statements format.

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Typewritten answers only, please. No handwritten answers. Thank you.

GOLDEN MANUFACTURING COMPANY Horizontal Statements Model Balance Sheet Income Statement Statement of Cash Flows Event Assets = Equity Revenue Expense = Net Income Cash + Equipment Accumulated Depreciation = Common Stock + Retained Earnings 2018 Issue stock + = + = Purchase equipment + = + = Revenue + = + = Depreciation expense + = + = Balance + = + = 2019 Beg. bal. + = + = Revenue + = + = Depreciation expense + = + = End. bal. + = + =

Typewritten answers only, please. No handwritten answers. Thank you.

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