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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:
Question a) Record the above transactions in a horizontal financial statements model to reflect their effect on Hardt's financial statements.
Question b) Prepare an income statement, balance sheet and statement of cash flows for 2012.
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