1.Using the FASB Codification login information provided, research the following. For each, identify the topic, subtopic, and section number (as applicable) that provide guidance for each and write the appropriate citation. For example, the topic, subtopic, and section number for the subsequent measurement of asset retirement obligations are 410, 20, and 35 respectively. Therefore, the citation is:
FASB ASC 410-20-35: "Asset Retirement and Environmental Obligations-Asset Retirement Obligations-Subsequent Measurement."
a.Fair value measurements and disclosures overall disclosures.
b.Business combinations.
c.Related party disclosures.
d.Internal- use software.
e.Recognition of stock compensation.
2.Martin & Mark operate the law office of M&M, PC. Transactions that took place in 2012 and 2013 are below:
2012 2013
Amounts billed to customers for law services $380,000 $440,000
Cash collected from customers 330,000 450,000
Cash disbursements for two years rent 60,000 0
Cash disbursements for salaries paid to employees 200,000 210,000
Cash disbursements for travel 50,000 60,000
Cash disbursements for travel utilities 30,000 50,000
Utility costs incurred in 2012 were $40,000. There were no liabilities at the end of 2013 and there were no anticipated bad debts on receivables.
Answer the following:
a.Calculate the net operating cash flow for 2012 and 2013. Hint: This is cash basis accounting.
b.Prepare income statement for years 2012 and 2013 using accrual basisaccounting .
c.Determine the receivables from customers that the company would show on its 2012 and 2013 balance sheets prepared using accrual basis accounting.
Contact me for questions. See you Tuesday.
Dr. O