The following transactions apply to Kenyon Co. for 2011, its first year of operations. 1. Issued ($

Question:

The following transactions apply to Kenyon Co. for 2011, its first year of operations.
1. Issued $\$ 80,000$ of common stock for cash.
2. Provided $\$ 110,000$ of services on account.
3. Collected $\$ 92,000$ cash from accounts receivable.
4. Loaned $\$ 20,000$ to Harpst Co. on November 30, 2011. The note had a one-year term to maturity and a 6 percent interest rate.
5. Paid $\$ 24,000$ of salaries expense for the year.
6. Paid a $\$ 1,000$ dividend to the stockholders.
7. Recorded the accrued interest on December 31, 2011 (see item 4).
8. Determined that $\$ 840$ 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 2011.

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

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