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 $95, 400 from the bank to start the business. Provided $63, 600 of services to clients and collected $53,000 cash. Paid salary expense of $33,920. Data for Sports Clothing Borrowed $95,400 from the bank to start the business. Purchased $63,600 inventory for cash. Inventory costing $27,560 was sold for S 53,000 cash. Paid $8,480 cash for operating expenses. Required: a. 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 $95, 400 from the bank to start the business. Provided $63, 600 of services to clients and collected $53,000 cash. Paid salary expense of $33,920. Data for Sports Clothing Borrowed $95,400 from the bank to start the business. Purchased $63,600 inventory for cash. Inventory costing $27,560 was sold for S 53,000 cash. Paid $8,480 cash for operating expenses. Required: a. Prepare an income statement, balance sheet, and statement of cash flows for each of the companies.

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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1 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 1. 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 Clothing 1. 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 each of the companies. Complete this question by entering your answers in the tabs below. Hopkins Income Statement Hopkins Balance Sheet Hopkins Statement Cash Flows Prepare an income statement for Hopkins.…
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