The following information is available for two different types of business for the Year 1 accounting year. Hopkin CPA is a service business that provides accounting services to small businesses. Sports Clothing is a merchandising business that sells sports clothing to college studs.

Data for Hopkins CPA's 1. Borrowed 90,000 from the bank to start the business. 2. Provided 60,000 services to clients and collected 50,000 cash. 3. Paid salary expenses of 32,000.

Data for Sports Clothing 1. Borrowed 90,000 from the bank to start the business. 2. Purchased 60,000 inventory for cash. 3. Inventory costing 26,000 was sold for cash. 4. Paid 8,000 cash for operating expenses.

Required a. prepare an income statement, balance sheet, and statement of cash flows for each of the companies.

a. Prepare an income statement, balance sheet, and statement of cash flows for each Complete this question by entering your answers in the tabs below. Prepare an income statement for Hopkins CPAs