Question

Required information [The following information applies to the questions displayed below.] The following transactions apply to...

Required information

[The following information applies to the questions displayed below.]

The following transactions apply to Hooper Co. for Year 1, its first year of operations:

  1. Issued $170,000 of common stock for cash.
  2. Provided $96,000 of services on account.
  3. Collected $84,000 cash from accounts receivable.
  4. Loaned $11,000 to Mosby Co. on November 30, Year 1. The note had a one-year term to maturity and a 6 percent interest rate.
  5. Paid $44,000 of salaries expense for the year.
  6. Paid a $3,000 dividend to the stockholders.
  7. Recorded the accrued interest on December 31, Year 1 (see item 4).
  8. Estimated that 1 percent of service revenue will be uncollectible.

Required
a. Show the effects of these transactions in a horizontal statements model like the one shown as follows. (Enter any decreases to account balances with a minus sign. Not all cells in the "Statement of Cash Flows" column may require an input - leave cells blank if there is no corresponding input needed.)

rev: 04_30_2019_QC_CS-167080

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