The following transactions apply to Hooper Co. for 2018, its first year of operations:

1. Issued $100,000 of common stock for cash.
2. Provided $96,000 of services on account.
3. Collected $82,000 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 $34,000 of salaries expense for the year.
6. Paid a $3,000 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.

1. Show the effects of these transactions in a horizontal statements model like the one shown below. (Enter any decreases to account balances with a minus sign. If there is no effect on the Statement of Cash Flow, leave the cell blank.)

HOOPER CO.

Horizontal Statements Model

Event No.

Assets

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Equity

Income Statement

Statement of Cash Flow

Cash

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Accounts Receivable

Allowance for Doubtful Accounts

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Notes Receivable

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Interest Receivable

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Common Stock

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Retained Earnings

Revenue

Expense

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Net Income

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2.

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3.

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4.

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5.

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6.

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7.

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8.

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Total

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2. Prepare the income statement, balance sheet, and statement of cash flows for 2018.

Prepare the income statement for 2018. (Round intermediate calculations and final answers to nearest whole dollar amount.)

Prepare the balance sheet for 2018. (Round intermediate calculations and final answers to nearest whole dollar amount.)

Prepare the statement of cash flows for 2018. (Amounts to be deducted should be indicated with a minus sign.)