1The following information is available for two different types of businesses for the Year1 accounting year. Hopkins CPAs is a service business that provides accountingservices to small businesses. Sports Clothing is a merchandising business that sellssports clothing to college students.Data for Hopkins CPAs1. Borrowed $44,000 from the bank to start the business.2. Provided $34,000 of services to clients and collected $34,000 cash.3. Paid salary expense of $21,800.Data for Sports Clothing1. Borrowed $44,000 from the bank to start the business.2. Purchased $23,000 inventory for cash.3. Inventory costing $19,300 was sold for $35,000 cash.4. Paid $2,800 cash for operating expenses.Required:a. Prepare an income statement, balance sheet, and statement of cash flows for eachof the companies.Complete this question by entering your answers in the tabs below.HopkinsIncomeStatementHopkinsBalance SheetHopkinsStatementCash FlowsPrepare an income statement for Hopkins.HOPKINS CPASIncome StatementFor the Year Ended December 31, Year 1RevenueExpensesSports Income Sports BalanceSheetStatement$0SportsStatementCash Flows

Revenue:Accounting Services Provided: $34,000Expenses:Salary Expense: $21,800Net Income:Revenue -…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Required information [The following information applies to the questions displayed below.] Gibson Company began operations on January 1, year 1, by issuing common stock for $35,000 cash. During year 1, Gibson received $63,200 cash from revenue and incurred costs that required $51,200 of cash payments. Prepare a GAAP-based income statement and balance sheet for Gibson Company for year 1 under the following scenario: b. Gibson is in the car rental business. The $51,200 was paid to purchase automobiles. The automobiles were purchased on January 1, year 1, and have four-year useful lives, with no expected salvage value. Gibson uses straight-line depreciation. The revenue was generated by leasing the automobiles. Complete this question by entering your answer in the tabs below. Income Statement Balance Sheet Prepare an Income Statement. GIBSON COMPANY Income Statement for Year 1 Income Statement Balance Sheet >
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