Reference no: EM132985934

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.