The following transactions apply to Hooper Co. for 2016, its first year of operations: 1. Issued $60,000

Question:

The following transactions apply to Hooper Co. for 2016, its first year of operations:

1. Issued $60,000 of common stock for cash.

2. Provided $90,000 of services on account.

3. Collected $78,000 cash from accounts receivable.
4. Loaned $20,000 to Mosby Co. on November 30, 2016. The note had a one-year term to maturity and a 6 percent interest rate.

5. Paid $26,000 of salaries expense for the year.

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

7. Recorded the accrued interest on December 31, 2016.

8. Determined that $920 of accounts receivable were uncollectible.

Required

a. Record the above transactions in general journal form.

b. Post the entries to T-accounts.

c. Prepare the income statement, balance sheet, and statement of cash flows for 2016.

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

The following transactions apply to Hooper Co. for 2016, its

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... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... 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...