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 2 years agoRelated Solutions
The following transactions apply to Hooper Co. for Year 1, its first year of operations: Issued...
The following transactions apply to Hooper Co. for Year 1, its
first year of operations: Issued $170,000 of common stock for cash.
Provided $96,000 of services on account. Collected $84,000 cash
from accounts receivable. Loaned $11,000 to Mosby Co. on November
30, Year 1. The note had a one-year term to maturity and a 6
percent interest rate. Paid $44,000 of salaries expense for the
year. Paid a $3,000 dividend to the stockholders. Recorded the
accrued interest on December 31,...
The following transactions apply to Hooper Co. for Year 1, its first year of operations: Issued...
The following transactions apply to Hooper Co. for Year 1, its
first year of operations:
Issued $130,000 of common stock for cash.
Provided $104,000 of services on account.
Collected $90,000 cash from accounts receivable.
Loaned $13,000 to Mosby Co. on November 30, Year 1. The note
had a one-year term to maturity and a 8 percent interest rate.
Paid $46,000 of salaries expense for the year.
Paid a $3,500 dividend to the stockholders.
Recorded the accrued interest on December 31,...
The following transactions apply to Pecan Co. for 2018, its first year of operations: Received $35,000...
The following transactions apply to Pecan Co. for 2018, its
first year of operations:
Received $35,000 cash in exchange for issuance of common
stock.
Secured a $117,000 ten-year installment loan from State Bank.
The interest rate is 7 percent and annual payments are
$16,296.
Purchased land for $27,000.
Provided services for $80,000.
Paid other operating expenses of $40,000.
Paid the annual payment on the loan.
Required
Organize the transaction data in accounts under an accounting
equation.
Prepare an income statement...
The following transactions apply to Pecan Co. for Year 1, its first year of operations: Received...
The following transactions apply to Pecan Co. for Year 1, its
first year of operations:
Received $38,000 cash in exchange for issuance of
common stock.
Secured a $101,000 ten-year installment loan from State Bank.
The interest rate is 6 percent and annual payments are
$13,723.
Purchased land for $20,000.
Provided services for $115,000.
Paid other operating expenses of $39,000.
Paid the annual payment on the loan.
Required
Organize the transaction data in accounts under an accounting
equation.
Prepare an income...
Sage Inc. experienced the following transactions for 2018, its first year of operations: Issued common stock...
Sage Inc. experienced the following transactions for 2018, its
first year of operations:
Issued common stock for $100,000 cash.
Purchased $200,000 of merchandise on account.
Sold merchandise that cost $154,000 for $306,000 on
account.
Collected $276,000 cash from accounts receivable.
Paid $180,000 on accounts payable.
Paid $48,000 of salaries expense for the year.
Paid other operating expenses of $64,000.
Sage adjusted the accounts using the following information from
an accounts receivable aging schedule:
Number of Days Past Due
Amount
Percent...
Sage Inc. experienced the following transactions for 2018, its first year of operations: Issued common stock...
Sage Inc. experienced the following transactions for 2018, its
first year of operations:
Issued common stock for $110,000 cash.
Purchased $205,000 of merchandise on account.
Sold merchandise that cost $164,000 for $326,000 on
account.
Collected $292,000 cash from accounts receivable.
Paid $185,000 on accounts payable.
Paid $54,000 of salaries expense for the year.
Paid other operating expenses of $70,000.
Sage adjusted the accounts using the following information from
an accounts receivable aging schedule:
Number of Days Past Due
Amount
Percent...
Sage Inc. experienced the following transactions for 2018, its first year of operations: Issued common stock...
Sage Inc. experienced the following transactions for 2018, its
first year of operations:
Issued common stock for $110,000 cash.
Purchased $205,000 of merchandise on account.
Sold merchandise that cost $164,000 for $326,000 on
account.
Collected $292,000 cash from accounts receivable.
Paid $185,000 on accounts payable.
Paid $54,000 of salaries expense for the year.
Paid other operating expenses of $70,000.
Sage adjusted the accounts using the following information from
an accounts receivable aging schedule:
Number of Days Past Due
Amount
Percent...
Choctaw Co. completed the following transactions in 2018, the first year of operation: Issued 31,000 shares...
Choctaw Co. completed the following transactions in 2018, the
first year of operation:
Issued 31,000 shares of $10 par common stock for $10 per
share.
Issued 4,100 shares of $20 stated value preferred stock for $20
per share.
Purchased 2,100 shares of common stock as treasury stock for
$12 per share.
Declared a $3,100 cash dividend on preferred stock.
Sold 800 shares of treasury stock for $14 per share.
Paid $3,100 cash for the preferred dividend declared in Event
4....
Choctaw Co. completed the following transactions in 2018, the first year of operation: Issued 28,000 shares...
Choctaw Co. completed the following transactions in 2018, the
first year of operation:
Issued 28,000 shares of $10 par common stock for $10 per
share.
Issued 3,800 shares of $20 stated value preferred stock for $20
per share.
Purchased 1,800 shares of common stock as treasury stock for $12
per share.
Declared a $2,800 cash dividend on preferred stock.
Sold 800 shares of treasury stock for $14 per share.
Paid $2,800 cash for the preferred dividend declared in Event
4....
The following transactions occurred at Pharaoh Inc. during its first year of operation: a. Issued 100,000...
The following transactions occurred at Pharaoh Inc. during its
first year of operation:
a. Issued 100,000 common shares at $5 each; 1,000,000 no par
shares are authorized.
b. Issued 10,000 common shares for a building and land. The
building was appraised for $20,000, but the value of the land is
undeterminable. The shares are selling for $10 on the open
market.
c. Purchased 1,000 of its own common shares on the open market
for $16 per share.
d. Declared a...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Gives the following four numbers: a.01101010 b.11110001 c.10001000 d.00100010 then answer the questions: (i) What's the...
- Weez Ltd is a GST registered retailer of widgets with monthly accounting periods. The following is...
- explain the relationship between the SEC and the various private sector standard setting bodies that have,...
- You have been asked to prepare a December cash budget for Ashton Company, a distributor of...
- Holly bought a 7-year bond, with a 3% coupon paid semi annually. It was priced to...
- METAR Abbreviations METAR (Meteorological Aviation Report) is a format for reporting weather information, either for pilots...
- The data below are the heights of fathers and sons (inches). There are 8 rows in...
ADVERTISEMENT