Gifford Company experienced the following accounting events during 2019: Started operations on January 1 when it acquired $27,300 cash by issuing common stock.
Earned $46,400 of revenue on account.
On March 1 collected $56,900 cash as an advance for services to be performed for a one-year period starting March 1.
Collected $30,000 cash from accounts receivable.
On December 31, Year 2019, adjusted the books to recognize the revenue earned by providing services related to the advance described in Event 3.
a. Record the events in a financial statements model.
b. What amount of revenue would Gifford report on the December 2018 income statement?
c. What amount of cash flow from customers would Gifford report on the 2018 statement of cash flows?
d. What amount of unearned revenue would Gifford report on the 2018 and 2019 year-end balance shoots?
1. What are the 2019 opening balances for the revenue and expense accounts?
2. What amount of total assets would Gifford report on the December 21, 2018 balance sheet?