Note: Kindly provide the solution in an detailed excel format. Hardt Corporation

Question

Note: Kindly provide the solution in an detailed excel format.

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.

Explanation / Answer

B ) CASH FLOW STATEMENT

CASH FLOW FROM OPERATING ACTIVITIES

NET INCOME 40000

CASH RECEIVED FROM STOCK 10000

COLLECTED CASH FROM CUSTOMER 23000

PAID ON FOR ACCOUNTS PAYBLE (15000)

NET CASHFLOW FROM OPERATING ACTIVITIES 58000   

BALANCE SHEET

LIABILTY ASSET

ASSET + LIABILITY+ EUITY+REVENUE+TAX - EXPENSES NET ICOME 10000 +40000+23000    18000+15000 40000

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