The following information is available for two different types of businesses for the Year 1 accounting year.
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 $94,500 from the bank to start the business.
Provided $63,000 of services to clients and collected $52,500 cash.
Paid salary expense of $33,600.
Data for Sports Clothing
Borrowed $94,500 from the bank to start the business.
Purchased $63,000 inventory for cash.
Inventory costing $27,300 was sold for $52,500 cash.
Paid $8,400 cash for operating expenses.
Required
Prepare an income statement, balance sheet, and statement of cash flows for each of the companies
Fundamental Financial Accounting Concepts
ISBN: 978-0078025907
9th edition
Authors: Thomas Edmonds, Christopher Edmonds