The following information is available for two different types of businesses for the Year 1 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

 

Borrowed $94,500 from the bank to start the business.

Provided $63,000 of services to clients and collected $52,500 cash.

Paid salary expense of $33,600.

 

Data for Sports Clothing

 

Borrowed $94,500 from the bank to start the business.

Purchased $63,000 inventory for cash.

Inventory costing $27,300 was sold for $52,500 cash.

Paid $8,400 cash for operating expenses.

 

Required

Prepare an income statement, balance sheet, and statement of cash flows for each of the companies