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:

Grammatical Errors

Mistakes made in the use of grammar, affecting the correctness and clarity of sentences.

Speech Patterns

The distinctive ways in which people use language and vocal sounds to communicate, often influenced by cultural, social, and individual factors.

African American Narratives

Narratives that explore the experiences, struggles, and cultural contributions of African Americans.

Dramatic Tone

The quality or intensity of expression, often used in artistic contexts, to convey strong emotions or create a specific atmosphere.