Clark bell started a personal financial planning business when he accepted $65,000 cash as advance payment for managing the financial assets of a large estate. bell agreed to manage the estate for a one-year period beginning june 1, 2018.

required

a. show the effects of the advance payment and revenue recognition on the 2018 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 bell recognize on the 2019 income statement?

Exercise 6-2 variable costing income statement; explanation of difference in net operating income [lo6-2] ida sidha karya company is a family-owned company located on the island of bali in indonesia. the company produces a handcrafted balinese musical instrument called a gamelan that is similar to a xylophone. the gamelans are sold for $970. selected data for the company’s operations last year follow: units in beginning inventory 0 units produced 200 units sold 180 units in ending inventory 20 variable costs per unit: direct materials $ 130 direct labor $ 300 variable manufacturing overhead $ 30 variable selling and administrative $ 15 fixed costs: fixed manufacturing overhead $ 63,000 fixed selling and administrative $ 25,000 the absorption costing income statement prepared by the company’s accountant for last year appears below: sales $ 174,600 cost of goods sold 139,500 gross margin 35,100 selling and administrative expense 27,700 net operating income $ 7,400 required: 1. under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of last year? 2. prepare an income statement for last year using variable costing.