The following information is available for two different types of businesses for the Year 1 accounting year. Hopkins CPAs is a service business that provides accounting services to small businesses. Sports Clothing is a merchandising business that sells sports clothing to college students. Data for Hopkins CPAs
Borrowed $105,400 from the bank to start the business.
Provided $70,600 of services to clients and collected $58,000 cash.
Paid salary expense of $38,120.

Data for Sports Clothing
Borrowed $106,400 from the bank to start the business.
Purchased $68,600 inventory for cash.
Inventory costing $31,160 was sold for $58,000 cash.
Paid $10,280 cash for operating expenses.

Prepare an income statement, balance sheet, and statement of cash flows for each of the companies.