The following transactions apply to Brooks Co. for 2014, its first year of operations. 1. Issued $60,000

Question:

The following transactions apply to Brooks Co. for 2014, its first year of operations.
1. Issued $60,000 of for cash.
2. Provided $74,000 of services on account.
3. Collected $62,000 cash from accounts receivable.
4. Loaned $15,000 to Horne Co. on October 1, 2014. The note had a one-year term to and an 8 percent interest rate.
5. Paid $47,000 of salaries expense for the year.
6. Paid a $2,500 to the stockholders.
7. Recorded the accrued interest on December 31, 2014 (see item 4).
8. Uncollectible accounts expense is estimated to be 1 percent of service revenue on account.

Required
a. Show the effects of the above transactions in a horizontal statements model like the one shown below.

b. Prepare the income statement, balance sheet, and statement of cash flows for2014.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...