Ed arnold started a personal financial planning business

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Ed Arnold started a personal financial planning business when he accepted $120,000 cash as advance payment for managing the financial assets of a large estate. Arnold agreed to manage the estate for a one year period beginning May 1, 2013. 

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Required: 

a. Show the effects of the advance payment and revenue recognition on the 2013 financial statements using a horizontal statements model like the following one. In the Cash Flows column, use OA to designate operating activity, IA for investing activity, FA for financing activity, and NC for net change in cash. Use NA if the account is not affected.
b. How much revenue would Ed recognize on the 2014 income statement? 
c. What is the amount of cash flow from operating activities in 2014? 

Reference no: EM13919631

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