Hardt Corporation Began Business Operations and Experienced the Following Transactions

question 5

Essay

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

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Definitions:

Blood Clot

A semi-solid mass of blood that forms when blood components, such as platelets and fibrin, aggregate to stop bleeding from injured vessels, a key component of the hemostatic process.

Vitamin

Organic compounds that are essential in small amounts for the body to function properly, often obtained through diet.

Gastrin

A hormone produced by the stomach that stimulates the secretion of gastric acid.

Secreted

Refers to the process by which substances are produced and discharged from a cell, gland, or organ for a particular function in the organism or for excretion.