Question

I already submitted this question earlier, but rather than tell me what to do can you show me on income statement, balance sheet, and cash flows how to enter #2 hopkins provided $60,000 of service to clients but collected only $50000 cash. My answer keeps saying incomplete and I don't know where I have gone wrong.

Exercise 3-2 Comparing a merchandising company with a service company LO 3-1 The following information is available for two different types of businesses for the 2018 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 1. Borrowed $90,000 from the bank to start the business 2. Provided $60,000 of services to clients and collected $50,000 cash. 3. Paid salary expense of $32,000. Data for Sports Clothing 1. Borrowed $90,000 from the bank to start the business. 2. Purchased $50,000 inventory for cash. 3. Inventory costing $26,000 was sold for $50,000 cash. 4. Paid $8,000 cash for operating expenses. Required a. Prepare an income statement, balance sheet, and statement of cash flows for each of the companies.

Answer 1

As far as validity of answer is concerned , everything is absolutely correct. But what I think that sysyatem would be considering and returning your answer as incomplete is in certain column you have not mentioned the desired things. Like

1 . In income statement , you have not filled anything in the column opposite to the column where you have mentioned $60000 figure. Please fill it with fees earned.

2. In cash flow statement , in the column below Net cash from financing activities , please fill the column with the words "net increase in cash " . And below that column mention "beginning Cash balance " and in amount as 0.

Try all those suggestions mentioned above, except that everything is fine . (Not sure Cash flow statement is required to be prepared using direct method, anyway this seems to me to be OK).