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Missing Amounts from Financial Statements

The financial statements at the end of Wolverine Realty's first month of operations are as follows:

Required:

Analyze the interrelationships among the four financial statements and enter the missing amounts. If an amount is zero, enter "0".

Wolverine Realty
Income Statement
For the Month Ended April 30, 2019
Fees earned		$
Expenses:
Wages expense	$46,000
Rent expense	21,010
Supplies expense
Utilities expense	11,770
Miscellaneous expense	7,140
Total expenses		103,360
Net income		$96,740

Feedback

(a) Rearrange the income statement equation to calculate revenue: Net Income + Expenses = Revenue. (b) Using the total expense amount, you can determine the missing amount of supplies expense.

Wolverine Realty
Statement of Owner's Equity
For the Month Ended April 30, 2019
Dakota Rowe, capital, April 1, 2019		$
Investment on April 1, 2016	$383,000
Net income for April
Withdrawals	(46000)
Increase in owner's equity
Dakota Rowe, capital, April 30, 2019		$

Feedback

Because all four financial reports are interrelated, determine the related items. As you determine the missing amounts, re-calculate amounts and determine the accuracy of the reports. (c) Consider that this is the first month of operations. How does that impact the capital balance as of May 1? (d) You can obtain the income figure from the income statement.

Wolverine Realty
Balance Sheet
April 30, 2019
Assets
Cash	$129,350
Supplies	8,400
Land	306,200
Total assets		$
Liabilities
Accounts payable	$10,210
Owner's Equity
Dakota Rowe, capital
Total liabilities and owner's equity		$

Feedback

As you determine the missing amounts, re-calculate amounts and determine the accuracy of the reports. (h & j) First determine the total of the assets. Remember that the Total Asset amount is equal to the Total Liabilities and Owner's equity, based on the accounting equation. (i) Rearrange the accounting equation to calculate Owner's equity such that Assets Liabilities = Owner's Equity.

Use the minus sign to indicate cash outflows, decreases in cash, and cash payments.

Wolverine Realty
Statement of Cash Flows
For the Month Ended April 30, 2019
Cash flows from operating activities:
Cash receipts from customers	$
Cash payments for expenses and payments to creditors	-101,550
Net cash flow from operating activities		$
Cash flows from investing activities:
Cash payments for acquisition of land
Cash flows from financing activities:
Cash receipt of owners investment	$
Cash withdrawals by owner
Net cash flow from financing activities
Net increase (decrease) in cash and April 30, 2019, cash balance		$

Feedback

Because all four financial reports are interrelated, determine the related items. As you determine the missing amounts, re-calculate amounts and determine the accuracy of the reports. Recall that there are three activity types of cash flows: operating, investing, and financing. Increases to Cash result from receiving cash for services, selling assets, and owner investments. Decreases to Cash result from paying expenses, payments made on account, and owner withdrawals. (k) Cash received from customers is the same as fees earned (a) since there are no accounts receivable. (m) The land acquisition can be found on the balance sheet. (n & o) The owner investment and cash withdrawal are the same as those found on the statement of owner's equity. (q) The final net cash flow and April 30, 2019, cash balance should be the same as the Cash balance on the balance sheet.

1. Prepare balance sheet for Ebony Interiors as of February 29, 2019. Refer to the lists of Accounts , Labels, and Amount Descriptions provided for the exact wording of the answer choices for text entries. Be sure to complete the statement heading.

Financial information related to the proprietorship of Ebony Interiors for February and March 2019 is as follows:

Accounts	February 29, 2019	March 31, 2019
Accounts payable	$310,000	$400,000
Accounts receivable	800,000	960,000
Cash	320,000	380,000
Justin Berk, capital	?	?
Supplies	30,000	35,000

	Required:
1.	Prepare balance sheets for Ebony Interiors as of February 29 and March 31, 2019. Refer to the lists of Accounts, Labels, and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading.
2.	Determine the amount of net income for March, assuming that the owner made no additional investments or withdrawals during the month.
3.	Determine the amount of net income for March, assuming that the owner made no additional investments but withdrew $50,000 during the month.

Ebony Interiors

Balance Sheet

1	Assets
2
3
4
5
6	Liabilities
7
8	Owner's equity
9
10

1. Prepare balance sheet for Ebony Interiors as of March 31, 2019. Refer to the lists of Accounts , Labels, and Amount Descriptions provided for the exact wording of the answer choices for text entries. Be sure to complete the statement heading.

Ebony Interiors

Balance Sheet

1	Assets
2
3
4
5
6	Liabilities
7
8	Owner's equity
9
10

. Determine the amount of net income for March, assuming that the owner made no additional investments or withdrawals during the month.

The amount of net income for March is

3. Determine the amount of net income for March, assuming that the owner made no additional investments but withdrew $50,000 during the month.

The amount of net income for March is