Business, 22.02.2020 01:59 zelds63481

The following information is available for two different types of businesses for the Year 1 accounting year. Hopkins CPAs is a service business that provides accounting services to small businesses. Sports Clothing is a merchandising business that sells sports clothing to college students.
Data for Hopkins CPAs:
Borrowed $33,000 from the bank to start the business.
Provided $45,000 of services to clients and collected $45,000 cash.
Paid salary expense of $28,800.Data for Sports Clothing Borrowed $33,000 from the bank to start the business.
Purchased $34,000 inventory for cash. Inventory costing $28,600 was sold for $51,000 cash.
Paid $4,100 cash for operating expenses.
Required:
a. Prepare an income statement, balance sheet, and statement of cash flows for each of the companies. (Statement of Cash Flows only, items to be deducted must be indicated with a negative amount.)

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Answer from: ashiteru123

Explanation:

Entries of Data Hopkins:

Entry of borrowing from bank ⇒Dr Bank $33000

Cr Hopkin Capital $33000

Entry of services revenue⇒ Dr Cash $45000

Cr Service revenue $45000

Entry of salary expense⇒Dr Salary expense $ 28800

Cr cash $28800

Entries of Sports clothing:

Entry of borrowing from bank ⇒Dr Bank $33000

Cr Sports Capital $33000

Entry of purchases inventory ⇒ Dr inventory $34000

Cr Cash $34000

Entry of sales of inventory⇒a.) Dr Cost of goods sold $28600

Cr Inventory $28600

(to record cost of sales)

b.) Dr Cash $51000

Cr Sales revenue $51000

Entry of Operating expense ⇒ Dr Operating expense $4100

Cash $4100

Ledgers Data Hopkins:

Bank =33000

Cash=45000-28800=16200

Capital =33000

Revenue= 45000

Salary expense=28800

Trial balance Data Hopkins:

33000+16200+28800=33000+45000

Ledges of Sports clothing:

Bank=33000

Cash=51000-34000-4100=12900

Inventory=34000-28600=5400

Capital=33000

Sales revenue=51000

cost of goods sold=28600

Operating expense= 4100

Trial balance Sports clothing:

33000+12900+5400+28600+4100=33000+51000

a.) Income statement

Hopkin CPA

Service revenue = $45000

less: Total operating expense

Salary expense =$28800

Total= (28800)

Gross profit ⇒ $ 16200

Income statement

Sports clothing

Sales revenue = $51000

less: Cost of goods sold =(28600)

Gross profit 22400

less: operating expense =(4100)

Net profit 18300

Balance sheet Hopkin Cpa

Total Assets=

Bank=$33000

Cash=$16200

Shareholder equity :

Hopkin capital= $33000

Retained earning :$16200

Balance sheet Sports clothing

Total Assets=

Bank=$33000

Cash=$12900

Inventory=$5400

Shareholder equity :

Hopkin capital= $33000

Retained earning :$18300

Cash flow of hopkins CPA

Cash flow from operation

Net income = 16200

Cash flow from Operating activities

Increase in salaries =(28800)

Cash flow from financing activities

loan from bank for investing in business = 33000

20400

Cash flow of Sports clothing

Cash flow from operation

Net income = 18300

Cash flow from Operating activities

Increase in inventory =(34000)

Increase in operating expense =(4100)

Total =(38100)

Cash flow from financing activities

loan from bank for investing in business = 33000

13200

Answer from: Quest

i'm pretty sure the answer is 60.

Answer from: Quest

answer; (a) searching for information can be done quickly;

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