Question
In: Accounting
The following transactions apply to Hooper Co. for 2018, its first year of operations: Issued $100,000...
The following transactions apply to Hooper Co. for 2018, its first year of operations:
- Issued $100,000 of common stock for cash.
- Provided $98,000 of services on account.
- Collected $84,000 cash from accounts receivable.
- Loaned $13,000 to Mosby Co. on November 30, 2018. The note had a one-year term to maturity and a 8 percent interest rate.
- Paid $36,000 of salaries expense for the year.
- Paid a $3,500 dividend to the stockholders.
- Recorded the accrued interest on December 31, 2018 (see item 4).
- Estimated that 1 percent of service revenue will be uncollectible.
- Show the effects of these transactions in a horizontal statements model like the one shown below. (Enter any decreases to account balances with a minus sign. If there is no effect on the Statement of Cash Flow, leave the cell blank.)
| HOOPER CO. | ||||||||||||||||||||
| Horizontal Statements Model | ||||||||||||||||||||
| Event No. | Assets | = | Equity | Income Statement | Statement of Cash Flow | |||||||||||||||
| Cash | + | Accounts Receivable | – | Allowance for Doubtful Accounts | + | Notes Receivable | + | Interest Receivable | = | Common Stock | + | Retained Earnings | Revenue | – | Expense | = | Net Income | |||
| 1. | not attempted | + | not attempted | – | not attempted | + | not attempted | + | not attempted | = | not attempted | + | not attempted | not attempted | – | not attempted | = | not attempted | not attempted | not attempted |
| 2. | not attempted | + | not attempted | – | not attempted | + | not attempted | + | not attempted | = | not attempted | + | not attempted | not attempted | – | not attempted | = | not attempted | not attempted | not attempted |
| 3. | not attempted | + | not attempted | – | not attempted | + | not attempted | + | not attempted | = | not attempted | + | not attempted | not attempted | – | not attempted | = | not attempted | not attempted | not attempted |
| 4. | not attempted | + | not attempted | – | not attempted | + | not attempted | + | not attempted | = | not attempted | + | not attempted | not attempted | – | not attempted | = | not attempted | not attempted | not attempted |
| 5. | not attempted | + | not attempted | – | not attempted | + | not attempted | + | not attempted | = | not attempted | + | not attempted | not attempted | – | not attempted | = | not attempted | not attempted | not attempted |
| 6. | not attempted | + | not attempted | – | not attempted | + | not attempted | + | not attempted | = | not attempted | + | not attempted | not attempted | – | not attempted | = | not attempted | not attempted | not attempted |
| 7. | not attempted | + | not attempted | – | not attempted | + | not attempted | + | not attempted | = | not attempted | + | not attempted | not attempted | – | not attempted | = | not attempted | not attempted | not attempted |
| 8. | not attempted | + | not attempted | – | not attempted | + | not attempted | + | not attempted | = | not attempted | + | not attempted | not attempted | – | not attempted | = | not attempted | not attempted | not attempted |
| Total | 0 | + | 0 | – | 0 | + | 0 | + | 0 | = | 0 | + | 0 | 0 | – | 0 | = | 0 | 0 | |
- Prepare the income statement, balance sheet, and statement of cash flows for 2018.
| HOOPER CO. | ||
| Income Statement | ||
| For the Year Ended December 31, 2018 | ||
| not attempted | not attempted | |
| Operating expenses | ||
| not attempted | not attempted | |
| not attempted | not attempted | |
| not attempted | not attempted | |
| Total operating expenses | 0 | |
| not attempted | not attempted | |
| Non-Operating Items | ||
| not attempted | not attempted | not attempted |
| not attempted | not attempted | not attempted |
| not attempted | ||
| HOOPER CO. | ||
| Balance Sheet | ||
| As of the End of the Year 2018 | ||
| Assets | ||
| not attempted | not attempted | |
| not attempted | not attempted | |
| not attempted | not attempted | 0 |
| not attempted | not attempted | not attempted |
| not attempted | not attempted | not attempted |
| not attempted | not attempted | not attempted |
| Total assets | 0 | |
| Liabilities | not attempted | |
| Stockholders’ equity | ||
| not attempted | not attempted | |
| not attempted | not attempted | |
| not attempted | not attempted | |
| Total stockholders’ equity | 0 | |
| Total liabilities and stockholders’ equity | $0 | |
Solutions
ekkarill92 answered 1 year agoRelated Solutions
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