60.1K

Verified Solution

Link Copied!

Seth Feye established Reliance Financial Services on July 1, 2018. 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, 2018. 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. 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, 2018. 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. The word Less or Add is not needed in the Retained Earnings Statement. Enter all amounts as positive numbers. If an amount is zero, enter "0".
3.	Prepare a balance sheet as of July 31, 2018. 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.
4.	Prepare a statement of cash flows for the month ending July 31, 2018. 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. Enter amounts that represent cash outflows as a negative number using a minus sign. You will not need to enter colons (:) on the financial statements. If an amount is zero, enter "0".

Accounts, Labels and Amount Descriptions

Accounts
Accounts receivable
Accounts payable
Auto expense
Cash
Common stock
Fees earned
Miscellaneous expense
Rent expense
Retained earnings
Salaries expense
Supplies
Supplies expense
Labels
Cash flows from financing activities
Cash flows from investing activities
Cash flows from operating activities
Expenses
For the Month Ended July 31, 2018
July 31, 2018
Amount Descriptions
Cash dividends
Cash payments for expenses and payments to creditors
Cash payments for purchase of land
Cash received from customers
Cash received from issuing common stock
Change in retained earnings
Dividends
Investment on July 1, 2018
Net cash flows from financing activities
Net cash flows from investing activities
Net cash flows from operating activities
Net cash flows used for financing activities
Net cash flows used for investing activities
Net cash flows used for operating activities
Net decrease in cash and July 31, 2018, cash balance
Net income
Net increase in cash and July 31, 2018, cash balance
Net loss
Retained earnings, July 1, 2018
Retained earnings, July 31, 2018
Total assets
Total expenses
Total liabilities and stockholders equity
Total stockholders equity

Income Statement

1. Prepare an income statement for the month ended July 31, 2018. 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. 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.

Reliance Financial Services

Income Statement

1
2
3
4
5
6
7
8
9

Retained Earnings Statement

2. Prepare a retained earnings statement for the month ended July 31, 2018. 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. The word Less or Add is not needed in the Retained Earnings Statement. If an amount is zero, enter "0". If a net loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign.

Reliance Financial Services

Retained Earnings Statement

1
2
3
4
5

Balance Sheet

3. Prepare a balance sheet as of July 31, 2018. 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.

Reliance Financial Services

Balance Sheet

1	Assets
2
3
4
5
6	Liabilities
7
8	Stockholders Equity
9
10
11
12

Statement of Cash Flows

4. Prepare a statement of cash flows for the month ending July 31, 2018. 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. Enter amounts that represent cash outflows as a negative number using a minus sign. You will not need to enter colons on the financial statements. If an amount is zero, enter "0".

Reliance Financial Services

Statement of Cash Flows

1
2
3
4
5
6
7
8
9
10

I would like to get help from this question. Please fill in the blanks of the problem. Thank You!

Answer & Explanation Solved by verified expert

See Answer