The following transactions apply to Hooper Company for Year 1, its first year of operations:...
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Accounting
The following transactions apply to Hooper Company for Year 1, its first year of operations:
Issued $190,000 of common stock for cash.
Provided $102,000 of services on account.
Collected $88,000 cash from accounts receivable.
Loaned $13,000 to Mosby Company on November 30, Year 1. The note had a one-year term to maturity and a 8 percent interest rate.
Paid $42,000 of salaries expense for the year.
Paid a $2,000 dividend to the stockholders.
Recorded the accrued interest on December 31, Year 1 (see item 4).
Determined that $740 of accounts receivable were uncollectible. Hooper Company uses the direct write-off method.
Required
Record the above transactions in general journal form.
Post the entries to T-accounts.
Prepare the income statement, balance sheet, and statement of cash flows for Year 1.
Show the effects of the above transactions in a horizontal statements model. When you record amounts in the Statement of Cash Flows column, indicate whether the item is an operating activity (OA), investing activity (IA), financing activity (FA), or net change (NC). Leave blank to indicate that an element is not affected by the event.
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