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Seth Feye established Reliance Financial Services on July 1, 2016. Reliance Financial Services offers financial planning advice to its clients. The effect of each transaction and the balances after each transaction for July follow: Assets =Liabilities + Stockholders Equity Accounts Accounts Common Fees Salaries Rent Auto Supplies Misc. Cash Receivable + Supplies = Payable + Stock - Dividends + Earned - Expense - Expense - Expense - Expense - Expense a. +50,000 +50,000 b. +7,000 +7,000 Bal. 50,000 7,000 7,000 50,000 c. -3,600 -3,600 Bal. 46,400 7,000 3,400 50,000 d. +110,000 +110,000 Bal. 156,400 7,000 3,400 50,000 110,000 e. -33,000 -33,000 Bal. 123,400 7,000 3,400 50,000 110,000 -33,000 f. -20,800 -16,000 -4,800 Bal. 102,600 7,000 3,400 50,000 110,000 -33,000 -16,000 -4,800 g. -55,000 -55,000 Bal. 47,600 7,000 3,400 50,000 110,000 -55,000 -33,000 -16,000 -4,800 h. -4,500 -4,500 Bal. 47,600 2,500 3,400 50,000 110,000 -55,000 -33,000 -16,000 -4,500 -4,800 i. +34,500 +34,500 Bal. 47,600 34,500 2,500 3,400 50,000 144,500 -55,000 -33,000 -16,000 -4,500 -4,800 j. -15,000 -15,000 Bal. 32,600 34,500 2,500 3,400 50,000 -15,000 144,500 -55,000 -33,000 -16,000 -4,500 -4,800 Required: 1. Prepare an income statement for the month ended July 31, 2016. Refer to the lists of Accounts in the information given, Labels, and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. If there is a net loss, enter that amount as a negative number using a minus sign. You will not need to enter colons (:) on the income statement. 2. Prepare a retained earnings statement for the month ended July 31, 2016. Refer to the lists of Accounts in the information given, Labels, and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. The word Less or Add is not needed in the Retained Earnings Statement. Enter all amounts as positive numbers. 3. Prepare a balance sheet as of July 31, 2016. Refer to the lists of Accounts in the information given, Labels, and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. 4. Prepare a statement of cash flows for the month ending July 31, 2016. Refer to the lists of Accounts in the information given, Labels, and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. Enter amounts that represent cash outflows as a negative number using a minus sign. You will not need to enter colons (:) or the word Deduct on the financial statements.

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