Business, 24.12.2019 01:31 Jasten

Golden manufacturing company started operations by acquiring $150,000 cash from the issue of common stock. on january 1, year 1, the company purchased equipment that cost $120,000 cash, had an expected useful life of six years, and had an estimated salvage value of $4,000. golden manufacturing earned $72,000 and $83,000 of cash revenue during year 1 and year 2, respectively. golden manufacturing uses double-declining-balance depreciation.
required

a. record the purchase in a horizontal statements model.
b-1. prepare income statements for year 1 and year 2.
b-2. prepare balance sheets for year 1 and year 2.
b-3. prepare statements of cash flows for year 1 and year 2.

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Golden manufacturing company started operations by acquiring $150,000 cash from the issue of common...

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