FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text: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 $95, 400 from the bank to start the business. Provided $63, 600 of
services to clients and collected $53,000 cash. Paid salary expense of $33,920.
Data for Sports Clothing Borrowed $95,400 from the bank to start the business.
Purchased $63,600 inventory for cash. Inventory costing $27,560 was sold for $
53,000 cash. Paid $8,480 cash for operating expenses. Required: a. Prepare an
income statement, balance sheet, and statement of cash flows for each of the
companies.
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- 1 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 $44,000 from the bank to start the business. 2. Provided $34,000 of services to clients and collected $34,000 cash. 3. Paid salary expense of $21,800. Data for Sports Clothing 1. Borrowed $44,000 from the bank to start the business. 2. Purchased $23,000 inventory for cash. 3. Inventory costing $19,300 was sold for $35,000 cash. 4. Paid $2,800 cash for operating expenses. Required: a. Prepare an income statement, balance sheet, and statement of cash flows for each of the companies. Complete this question by entering your answers in the tabs below. Hopkins Income Statement Hopkins Balance Sheet Hopkins Statement Cash Flows Prepare an income statement for Hopkins.…arrow_forwardThe following are the transactions of Spotlighter, Incorporated, for the month of January. a. Borrowed $4,390 from a local bank on a note due in six months. b. Received $5,080 cash from investors and issued common stock to them. c. Purchased $1,900 in equipment, paying $650 cash and promising the rest on a note due in one year. d. Paid $750 cash for supplies. e. Bought and received $1,150 of supplies on account. Required: Post the effects to the appropriate T-accounts and determine ending account balances. Show a beginni Debit Beginning Balance Ending Balance Debit F Cash Equipment Credit Credit Debit Beginning Balance Ending Balance Debit Supplies Accounts Payablearrow_forwardMr. Juan Lopez opened a mini grocery store with business ame lopez Freta Mart. Operations began on Apr 1, 20xX, and the following transactions were completed during the month: 1. The business was registered as single proprietorship with the Department of Trade and Industry, Juan Lope invested P39,000. 2 Bought computer equipment for P10,000 cash. 2 Bought merchandise on account from LOWTOWN Supply Co. P15,900, Term, 2/10, n/30. 3. Bought office supplies on cash basis for P700 4. Sold merchandize on account P15,200 FOB Destination, terms 2/10, n/30. 5. Paid P200 freight on April 4 sale. 6. Received credit memo LOWTOWN Supply Co. for merchandise return P300. 11 Paid LOWTOWN. 13.Collected from April 4 customers. 14 Bought merchandise on cash basis for P14,400. 15Salaries paid P1,500. 16.Borrowed money from RCBC Bank, signed a promissory note for p12,000. 17. Received refund from a supplier on cash purchase of April 14, P500 18. Bought merchandize from MESDA, P14,200 FOB Shipping,…arrow_forward
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