Houston Company Began Business Operations and Experienced the Following Transactions

question 73

Essay

Houston Company began business operations and experienced the following transactions during 2013:
1) Issued common stock for $20,000 cash.
2) Provided services to customers for $50,000 on account.
3) Purchased $1,000 of supplies on account.
4) Paid $12,000 cash to rent office space for a 12-month period beginning July 1.
5) Collected $46,000 cash from customers.
6) Paid cash for $36,000 of operating expenses.
7) Adjusted the accounting records to reflect that there was $300 of supplies remaining on hand at year-end.
8) Recorded an end-of-year adjustment to recognize rent expense.
Required:
a) Record the above transactions on a horizontal statements model, reflecting their effect on the different financial statements.
b) Prepare Houston Company's income statement, balance sheet and statement of cash flows for the year ended December 31, 2013.

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Definitions:

National Labor Relations Act

is a crucial piece of American legislation that safeguards the rights of workers to unionize and engage in collective bargaining, serving as the foundation for labor law in the United States.

Bargaining Power

The extent of influence or leverage one party holds over another in negotiations, affecting the ability to secure favorable terms.

Restrictions

Regulations or limitations placed on actions, activities, or movements to control or reduce certain behaviors or practices.

Contract Clause

A specific provision or condition within a contract that specifies obligations, rights, or actions to be taken by the parties involved.