Answer:
Hopkins CPAs
Income Statement
Revenue 44,000.00
Salary 28,200.00
Profit 15,800.00
Balance Sheet
Assets
Cash <u>49,800.00</u>
Total <u>49,800.00</u>
Capital & Liabilities
Retained Earnings 15,800.00
Loan 34,000.00
<u> </u>
Total <u>49,800.00</u>
Cashflow Statement
<u> Operating Activities</u>
Revenue 44,000.00
Salary 28,200.00
Net Flow 15,800.00
<u>Investing Activities</u>
NIL
<u>Financing Activities</u>
Loan 34,000.00
Opening Cash NIL
Net Cashflow <u>49,800 </u>
Closing Cash <u> 49,800.00</u>
2. <u>Sports Clothing</u>
Income Statement
Revenue 50,000.00
Cost of Sales 27,700.00
Operating Expenses <u>4,000.00</u>
Profit <u>18,300.00</u>
Balance Sheet
Assets
Cash 47,000.00
Inventory 5,300.00
<u> </u>
Total <u> 52,300.00</u>
Capital & Liabilities
Retained Earnings 18,300.00
Loan <u>34,000.00</u>
Total <u>52,300.00</u>
Cashflow Statement
Operating Activities
Revenue 50,000.00
Operating Costs 31,700.00
Working Capital 5,300.00
<em>Net Flow 13,000.00</em>
Investing Activities
NIL
Financing Activities
Loan 34,000.00
Opening Cash NIL
Net Cashflow <u>47,000</u>
Closing Cash <u> 47,000.00</u>
Explanation:
<u>1. Hopkins CPAs </u>
Data for Hopkins CPAs Borrowed $34,000 from the bank to start the business.
Dr. Cash...34,000
Cr. Loan..........34,000
Provided $44,000 of services to clients and collected $44,000 cash.
Dr Cash......44,000
Cr Revenue..........44,000
Paid salary expense of $28,200.
Dr Salary Expense...28,200
Cr Cash............................28,200
Hopkins CPAs
Income Statement
Revenue 44,000.00
Salary 28,200.00
Profit 15,800.00
Balance Sheet
Assets
Cash <u>49,800.00</u>
Total <u>49,800.00</u>
Capital & Liabilities
Retained Earnings 15,800.00
Loan 34,000.00
<u> </u>
Total <u>49,800.00</u>
Cashflow Statement
<u> Operating Activities</u>
Revenue 44,000.00
Salary 28,200.00
Net Flow 15,800.00
<u>Investing Activities</u>
NIL
<u>Financing Activities</u>
Loan 34,000.00
Opening Cash NIL
Net Cashflow <u>49,800 </u>
Closing Cash <u> 49,800.00</u>
2. <u>Sports Clothing</u>
1.Borrowed $34,000 from the bank to start the business.
Dr Cash...34,000
Cr Loan..............34,000
2.Purchased $33,000 inventory for cash.
Dr. Inventory.....33,000
Cr. Cash.....................33,000
3.Inventory costing $27,700 was sold for $50,000 cash.
Dr. Cash.... 50,000
Cr. Sales.................50,000
Dr. Cost of Sales...27,700
Cr. Inventory...................27,700
4.Paid $4,000 cash for operating expenses.
Dr. Operating Expenses...4000
Cr. Cash..................................4,000
Income Statement
Revenue 50,000.00
Cost of Sales 27,700.00
Operating Expenses <u>4,000.00</u>
Profit <u>18,300.00</u>
Balance Sheet
Assets
Cash 47,000.00
Inventory 5,300.00
<u> </u>
Total <u> 52,300.00</u>
Capital & Liabilities
Retained Earnings 18,300.00
Loan <u>34,000.00</u>
Total <u>52,300.00</u>
Cashflow Statement
Operating Activities
Revenue 50,000.00
Operating Costs 31,700.00
Working Capital 5,300.00
<em>Net Flow 13,000.00</em>
Investing Activities
NIL
Financing Activities
Loan 34,000.00
Opening Cash NIL
Net Cashflow <u>47,000</u>
Closing Cash <u> 47,000.00</u>
