Question
Required information [The following information applies to the questions displayed below.] The following transactions apply to Hooper Co. for 2018, its first year of operations:
Required information
[The following information applies to the questions displayed below.] The following transactions apply to Hooper Co. for 2018, its first year of operations:
1. Issued $140,000 of common stock for cash.
2. Provided $88,000 of services on account.
3. Collected $74,000 cash from accounts receivable.
4. Loaned $13,000 to Mosby Co. on November 30, 2018. The note had a one-year term to maturity and a 6 percent interest rate.
5. Paid $46,000 of salaries expense for the year.
6. Paid a $3,500 dividend to the stockholders.
7. Recorded the accrued interest on December 31, 2018 (see item 4).
8. Estimated that 1 percent of service revenue will be uncollectible.
Required
a. Show the effects of these transactions in a horizontal statements model like the one shown as follows. (Enter any decreases to account balances and cash outflows with a minus sign. Do not round intermediate calculations and round your final answers to nearest whole number.)
Required information Equity Assets Allowance for Accounts Event No Cash Accounts Al Notes Receivable Common Stock Reta Earni Doubt Interest Receivable Receivable 3. 4. 5. 6. 7. 8. Total
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