Question
The following information is available for two different types of businesses for the 2016 accounting year. Hopkins CPAs is a service business that provides accounting
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The following information is available for two different types of businesses for the 2016 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 $41,000 from the bank to start the business. 2. Provided $31,000 of services to clients and collected $31,000 cash. 3. Paid salary expense of $19,800. Data for Sports Clothing 1. Borrowed $41,000 from the bank to start the business. 2. Purchased $20,000 inventory for cash. 3. Inventory costing $16,800 was sold for $30,000 cash. 4. Paid $2,400 cash for operating expenses.
a. | Prepare an income statement, balance sheet, and statement of cash flows for each of the companies. |
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