Rice Lover Company began its operations on January 1, Year XXX1. The following transactions pertain...
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Rice Lover Company began its operations on January 1, Year XXX1. The following transactions pertain to the operations of Rice Lover Company for the Year XXX1:
i) Acquired $40,000 cash from issuing common stock
ii) Performed services for $12,000 cash.
iii) Provided $55,000 of services on account.
iv) Received $36,000 cash in advance for services to be performed over the next two years (i.e for Years XXX2 andXXX3).
v) Incurred $30,000 of other operating expenses on account.
vi) Collected $45,000 cash from Accounts Receivable.
vii) Paid $4,000 cash for rental expense for the year XXX1.
viii) Paid $12,000 (on December 31) for one years prepaid insurance for Year XXX2.
ix) Paid $5,000 cash dividend to shareholders
x) Paid $22,000 cash on Accounts Payable
Prepare an income statement and cash flow statement for the year XXX1 and a balance sheet as of December 31, Year XXX1.
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