The following transactions apply to Ard Co. for 2013, its first year of operations: 1. Issued $60,000

Question:

The following transactions apply to Ard Co. for 2013, its first year of operations:
1. Issued $60,000 of for cash.
2. Provided $94,000 of services on account.
3. Collected $84,500 cash from Loaned $10,000 to Swan Co. on October 1, 2013. The note had a one-year term to and a 6 percent interest rate.
5. Paid $41,000 of salaries expense for the year.
6. Paid a $3,000 to the stockholders.
7. Recorded the accrued interest on December 31, 2013 (see item 4).
8. Determined that $990 of were uncollectible. The company uses the direct write-off method.

Required
a. Record the above transactions in general journal form.
b. Post the entries to T-accounts.
c. Prepare the income statement, balance sheet, and statement of cash flows for 2013.
d. Show the effects of the above transactions in a horizontal statements model like the one shownbelow.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...