ACCT315 1. Using the FASB Codification login information provided, research the following. For each,

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’s initial measurement. 

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:

                                                                                                                          20122013

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 basis accounting .

c.Determine the receivables from customers that the company would show on its 2012 and 2013 balance sheets prepared using accrual basis accounting.