The following information is available for two different types of businesses for the Year 1 accounting year. Hopkins CPAs is a service business that provides accounting services to small businesses. Sports Clothing is a merchandising business that sells sports clothing to college students. Data for Hopkins CPAs Borrowed $106,200 from the bank to start the business. Provided $70,800 of services to clients and collected $59,000 cash. Paid salary expense of $37,760. Data for Sports Clothing Borrowed $106,200 from the bank to start the business. Purchased $70,800 inventory for cash. Inventory costing $30,680 was sold for $59,000 cash. Paid $9,440 cash for operating expenses. Required Prepare an income statement, balance sheet, and statement of cash flows for each of the companies.
The following information is available for two different types of businesses for the Year 1 accounting year. Hopkins CPAs is a service business that provides accounting services to small businesses. Sports Clothing is a merchandising business that sells sports clothing to college students. Data for Hopkins CPAs Borrowed $106,200 from the bank to start the business. Provided $70,800 of services to clients and collected $59,000 cash. Paid salary expense of $37,760. Data for Sports Clothing Borrowed $106,200 from the bank to start the business. Purchased $70,800 inventory for cash. Inventory costing $30,680 was sold for $59,000 cash. Paid $9,440 cash for operating expenses. Required Prepare an income statement, balance sheet, and statement of cash flows for each of the companies.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
The following information is available for two different types of businesses for the Year 1 accounting year. Hopkins CPAs is a service business that provides accounting services to small businesses. Sports Clothing is a merchandising business that sells sports clothing to college students.
Data for Hopkins CPAs
-
Borrowed $106,200 from the bank to start the business.
-
Provided $70,800 of services to clients and collected $59,000 cash.
-
Paid salary expense of $37,760.
Data for Sports Clothing
-
Borrowed $106,200 from the bank to start the business.
-
Purchased $70,800 inventory for cash.
-
Inventory costing $30,680 was sold for $59,000 cash.
-
Paid $9,440 cash for operating expenses.
Required
-
Prepare an income statement,
balance sheet , and statement ofcash flows for each of the companies.
Transcribed Image Text:Hopkins Inc
Stmt
Hopkins Bal
Sheet
Hopkins Cash
Flows Stmt
Sports Bal
Sheet
Sports Cash
Flows Stmt
Sports Inc
Stmt
Prepare an income statement for Hopkins CPAS.
HOPKINS CPAS
Income Statement
For the Year Ended December 31, Year 1
Revenue
Service revenue
Utilities expense
Expenses
Salaries expense
Net income
< Hopkins Inc Stmt
Hopkins Bal Sheet
>
Transcribed Image Text:Hopkins Inc
Stmt
Hopkins Bal
Sheet
Hopkins Cash
Flows Stmt
Sports Inc
Stmt
Sports Bal
Sheet
Sports Cash
Flows Stmt
Prepare a balance sheet for Hopkins CPAS.
HOPKINS CPAS
Balance Sheet
As of December 31, Year 1
Assets
Total assets
Liabilities
Total liabilities
Stockholders' equity
Total stockholders' equity
Total liabilities and stockholders' equity
2$
%24
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