Prepare the journal entries to record these transactions

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Reference no: EM13789077

Suppose your company sells services of $150 in exchange for $120 cash and $30 on account. Depreciation of $50 also is recorded.

1. Prepare the journal entries to record these transactions.

- Record the service revenue of $120 for cash and $30 on account.

- Record depreciation of $50.

2. Calculate the amount that should be reported as net cash flow from operating activities.

Net Cash Flow =

3. Calculate the amount that should be reported as net income.

Net Income =

4. Show how the indirect method would convert net income (requirement 3) to net cash flow from operating activities (requirement 2).

Net Income =

Depreciation =

Increase in Accounts Receivable =

Net Cash Flow from Operating Activities =

Reference no: EM13789077

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