Question

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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

Answer 1

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