The following transactions apply to Bialis Co. for 2012, its first year of operations. 1. Issued ($

Question:

The following transactions apply to Bialis Co. for 2012, its first year of operations.
1. Issued $\$ 100,000$ of common stock for cash.
2. Provided $\$ 86,000$ of services on account.
3. Collected $\$ 75,000$ cash from accounts receivable.
4. Loaned $\$ 10,000$ to Horne Co. on October 1, 2012. The note had a one-year term to maturity and an 8 percent interest rate.
5. Paid $\$ 32,000$ of salaries expense for the year.
6. Paid a $\$ 2,000$ dividend to the stockholders.
7. Recorded the accrued interest on December 31, 2012 (see item 4).
8. Determined that $\$ 560$ 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 2012.

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

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