Hardt Corporation began business operations and experienced the following transactions during 2012:
1)Issued common stock for $10,000 cash.
2)Provided services to customers for $40,000 on account.
3)Incurred $18,000 of operating expenses on credit.
4)Collected $23,000 cash from customers.
5)Paid $15,000 on accounts payable.
Required:
a)Record the above transactions in a horizontal financial statements model to reflect their effect on Hardt's financial statements. b)Prepare an income statement,balance sheet and statement of cash flows for 2012.

Question

Hardt Corporation began business operations and experienced the following transactions during 2012:
1)Issued common stock for $10,000 cash.
2)Provided services to customers for $40,000 on account.
3)Incurred $18,000 of operating expenses on credit.
4)Collected $23,000 cash from customers.
5)Paid $15,000 on accounts payable.
Required:
a)Record the above transactions in a horizontal financial statements model to reflect their effect on Hardt's financial statements.  b)Prepare an income statement,balance sheet and statement of cash flows for 2012.

Quizplus · Accepted Answer

The Answer of Hardt Corporation began business operations and experienced the following transactions during 2012:
1)Issued common stock for $10,000 cash.
2)Provided services to customers for $40,000 on account.
3)Incurred $18,000 of operating expenses on credit.
4)Collected $23,000 cash from customers.
5)Paid $15,000 on accounts payable.
Required:
a)Record the above transactions in a horizontal financial statements model to reflect their effect on Hardt's financial statements.  b)Prepare an income statement,balance sheet and statement of cash flows for 2012.

Hardt Corporation Began Business Operations and Experienced the Following Transactions