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 $106,200 from the bank to start the business. Provided $70,800 of services to clients and collected $59,000 cash. Paid salary expense of $37,760. Data for Sports Clothing Borrowed $106,200 from the bank to start the business. Purchased $70,800 inventory for cash. Inventory costing $30,680 was sold for $59,000 cash. Paid $9,440 cash for operating expenses. Required 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
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Borrowed $106,200 from the bank to start the business.
-
Provided $70,800 of services to clients and collected $59,000 cash.
-
Paid salary expense of $37,760.
Data for Sports Clothing
-
Borrowed $106,200 from the bank to start the business.
-
Purchased $70,800 inventory for cash.
-
Inventory costing $30,680 was sold for $59,000 cash.
-
Paid $9,440 cash for operating expenses.
Required
-
Prepare an income statement,
balance sheet , and statement of cash flows for each of the companies.
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