Golden Manufacturing Company started operations by acquiring $142,000 cash from the issue of common stock. On...

Golden Manufacturing Company started operations by acquiring $142,000 cash from the issue of common stock. On January 1, 2018, the company purchased equipment that cost $132,000 cash, had an expected useful life of five years, and had an estimated salvage value of $13,200. Golden Manufacturing earned $94,700 and $68,080 of cash revenue during 2018 and 2019, respectively. Golden Manufacturing uses double-declining-balance depreciation.

Required

Record the purchase in a horizontal statements model.

b-1. Prepare an income statements for 2018 and 2019. Use a vertical statements format.

b-2. Prepare a balance sheets for 2018 and 2019. Use a vertical statements format.

b-3. Prepare a statements of cash flows for 2018 and 2019. Use a vertical statements format.

Expert Solution

ekkarill92 answered 9 months ago

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