Reference no: EM132166241

Question - The following transactions apply to Hooper Co. for Year 1, its first year of operations:

1. Issued $200,000 of common stock for cash.

2. Provided $92,000 of services on account.

3. Collected $78,000 cash from accounts receivable.

4. Loaned $13,000 to Mosby Co. on November 30, Year 1. The note had a one-year term to maturity and a 6 percent interest rate.

5. Paid $38,000 of salaries expense for the year.

6. Paid a $2,000 dividend to the stockholders.

7. Recorded the accrued interest on December 31, Year1.

8. Estimated that 1 percent of service revenue will be uncollectible.

Required - Show the effects of these transactions in a horizontal statements model like the one shown as follows.