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Problem $5-26$A $($Algo$)$ Accounting for notes receivable and uncollectible accounts using the percent of sales allowance method LO $5-1,5-4$

$[$The following information applies to the questions displayed below.$]$

The following transactions apply to Hooper Co$.$ for Year $1,$ its first year of operations:

Issued $$130,000$ of common stock for cash.

Provided $$100,000$ of services on account.

Collected $$88,000$ 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 $$34,000$ of salaries expense for the year.

Paid a $$2,000$ dividend to the stockholders.

Recorded the accrued interest on December $31,$ Year $1($see item $4).$

Estimated that $1$ percent of service revenue will be uncollectible.

Problem $5-26$A $($Algo$)$ Accounting for notes receivable and uncollectible accounts using the percent of sales allowance method LO $5-1,5-4$

$[$The following information applies to the questions displayed below.$]$

The following transactions apply to Hooper Co$.$ for Year $1,$ its first year of operations:

Issued $$130,000$ of common stock for cash.

Provided $$100,000$ of services on account.

Collected $$88,000$ 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 $$34,000$ of salaries expense for the year.

Paid a $$2,000$ dividend to the stockholders.

Recorded the accrued interest on December $31,$ Year $1($see item $4).$

Estimated that $1$ percent of service revenue will be uncollectible.

Problem $5-26$A $($Algo$)$ Part b

b$.$ Prepare the income statement, balance sheet, and statement of cash flows for Year $1.$

Complete this question by entering your answers in the tabs below.

Req B Inc

Req B Bal

Req B Stmt

Stmt

Sheet

Cash Flows

Prepare the income statement for Year $1.($Round intermediate calculations and final answers to nearest whole dollar amount.$)$

$\backslash$table$[[$HOOPER CO$.,],[$Income Statement,$],[$Operating expenses,,$],[,,],[,,],[,,],[$Total operating expenses,,$],[,,],[$Non$-$Operating Items,,$],[,,],[,,],[,,]]$

Answer rating: 100% (QA)

Answer Req B Inc HOOPER CO Income Statement Revenues Service revenue100000 ... View the full answer