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 $91,800 from the bank to start the business. 2. Provided $61,200 of services to clients and collected $51,000 cash. 3. Paid salary expense of $32,640. Data for Sports Clothing 1. Borrowed $91,800 from the bank to start the business. 2. Purchased $61,200 inventory for cash. 3. Inventory costing $26,520 was sold for $51,000 cash. 4. Paid $8,160 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 1. Borrowed $91,800 from the bank to start the business. 2. Provided $61,200 of services to clients and collected $51,000 cash. 3. Paid salary expense of $32,640. Data for Sports Clothing 1. Borrowed $91,800 from the bank to start the business. 2. Purchased $61,200 inventory for cash. 3. Inventory costing $26,520 was sold for $51,000 cash. 4. Paid $8,160 cash for operating expenses. Required a. Prepare an income statement, balance sheet, and statement of cash flows for each of the companies.

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter1: Asset, Liability, Owner’s Equity, Revenue, And Expense Accounts

Section: Chapter Questions

Problem 1PB: In July of this year, M. Wallace established a business called Wallace Realty. The account headings...

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