Prepare an income statement for the month ended July 31, 20Y2. 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 statement of stockholders’ equity for the month ended July 31, 20Y2. 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 a net loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign. If an amount is zero, enter "0". 3. Prepare a balance sheet as of July 31, 20Y2. 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, 20Y2. 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. Use the minus sign to indicate cash outflows, cash payments and decreases in cash. You will not need to enter colons (:) on the financial statements. If an amount is zero, enter "0".
Prepare an income statement for the month ended July 31, 20Y2. 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 statement of stockholders’ equity for the month ended July 31, 20Y2. 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 a net loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign. If an amount is zero, enter "0". 3. Prepare a balance sheet as of July 31, 20Y2. 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, 20Y2. 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. Use the minus sign to indicate cash outflows, cash payments and decreases in cash. You will not need to enter colons (:) on the financial statements. If an amount is zero, enter "0".
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Topic Video
Question
Seth Feye established Reliance Financial Services on July 1, 20Y2. 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 | + |
||||||||||
Accounts | Accounts | Common | Fees | Salaries | Rent | Auto | Supplies | Misc. | ||||
Cash | +Receivable | + Supplies | = Payable | + Stock | - Dividends | + Earned | - Expense | - Expense | - Expense | - Expense | - Expense | |
a. | +53,000 | +53,000 | ||||||||||
b. | +6,000 | +6,000 | ||||||||||
Bal. | 53,000 | 6,000 | 6,000 | 53,000 | ||||||||
c. | -3,500 | -3,500 | ||||||||||
Bal. | 49,500 | 6,000 | 2,500 | 53,000 | ||||||||
d. | +108,000 | +108,000 | ||||||||||
Bal. | 157,500 | 6,000 | 2,500 | 53,000 | 108,000 | |||||||
e. | -33,400 | -33,400 | ||||||||||
Bal. | 124,100 | 6,000 | 2,500 | 53,000 | 108,000 | -33,400 | ||||||
f. | -21,100 | -15,200 | -5,900 | |||||||||
Bal. | 103,000 | 6,000 | 2,500 | 53,000 | 108,000 | -33,400 | -15,200 | -5,900 | ||||
g. | -59,000 | -59,000 | ||||||||||
Bal. | 44,000 | 6,000 | 2,500 | 53,000 | 108,000 | -59,000 | -33,400 | -15,200 | -5,900 | |||
h. | -3,900 | -3,900 | ||||||||||
Bal. | 44,000 | 2,100 | 2,500 | 53,000 | 108,000 | -59,000 | -33,400 | -15,200 | -3,900 | -5,900 | ||
i. | +50,100 | +50,100 | ||||||||||
Bal. | 44,000 | 50,100 | 2,100 | 2,500 | 53,000 | 158,100 | -59,000 | -33,400 | -15,200 | -3,900 | -5,900 | |
j. | -12,500 | -12,500 | ||||||||||
Bal. | 31,500 | 50,100 | 2,100 | 2,500 | 53,000 | -12,500 | 158,100 | -59,000 | -33,400 | -15,200 | -3,900 | -5,900 |
Required: | |
1. | Prepare an income statement for the month ended July 31, 20Y2. 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 statement of stockholders’ equity for the month ended July 31, 20Y2. 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 a net loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign. If an amount is zero, enter "0". |
3. | Prepare a |
4. | Prepare a statement of |
X
Income Statement
1. Prepare an income statement for the month ended July 31, 20Y2. 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
| | **(Label)** | |
|----|-------------|---|
| 1 | | |
| 2 | **(Label)** | |
| 3 | | |
| 4 | | |
| 5 | | |
| 6 | | |
| 7 | | |
| 8 | | |
| 9 | | |
**Explanation:**
The above table represents a blank income statement template for "Reliance Financial Services." This template is structured to assist in categorizing and reporting financial performance over a specific period. Here's a breakdown of the components:
- **Header:**
- **Title:** Indicating the company name, "Reliance Financial Services."
- **Subheading:** "Income Statement," specifying the type of financial document.
- **Table Columns and Rows:**
- The table contains columns for different financial data points and several blank rows for inputting the data.
- The header of the table includes a label separator for further categorization within the income statement.
Income statements typically include key financial entries like revenues, expenses, and net income. Each row would be populated with relevant financial data, aligning with the categories specified by the labels.
This template is useful for educational purposes to teach students or users how to record and analyze financial performance within a corporate context.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc82dc6b7-49c3-4fc1-9e76-a6bde42076b4%2F70873e77-ed10-4bee-b897-434e4dc29287%2Flyozgnb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:### Reliance Financial Services
#### Income Statement
| | **(Label)** | |
|----|-------------|---|
| 1 | | |
| 2 | **(Label)** | |
| 3 | | |
| 4 | | |
| 5 | | |
| 6 | | |
| 7 | | |
| 8 | | |
| 9 | | |
**Explanation:**
The above table represents a blank income statement template for "Reliance Financial Services." This template is structured to assist in categorizing and reporting financial performance over a specific period. Here's a breakdown of the components:
- **Header:**
- **Title:** Indicating the company name, "Reliance Financial Services."
- **Subheading:** "Income Statement," specifying the type of financial document.
- **Table Columns and Rows:**
- The table contains columns for different financial data points and several blank rows for inputting the data.
- The header of the table includes a label separator for further categorization within the income statement.
Income statements typically include key financial entries like revenues, expenses, and net income. Each row would be populated with relevant financial data, aligning with the categories specified by the labels.
This template is useful for educational purposes to teach students or users how to record and analyze financial performance within a corporate context.
![### Case Study: Reliance Financial Services - July Financial Transactions
**Overview:**
Seth Feye established Reliance Financial Services on July 1, 20Y2. Reliance Financial Services offers financial planning advice to its clients. Below is a detailed table of the effect of each transaction and the balances after each transaction for July.
**Financial Transactions and Balances Overview:**
| Ref | Transactions | Assets | Liabilities | Stockholders' Equity |
|------|---------------------|---------------------------|-------------------------|---------------------------------------|
| | | Accounts: | Accounts: | Common Stock | Fees Earned | Expenses |
| | | Cash | Receivable | Supplies | Payable | | | |
| | | - - - - - + | - | + - Dividends |
| a | Initial Investment | +53,000 | | +53,000 | | |
| b | Supplies on Credit | | | +6,000 | +6,000 | | | |
| Bal | | 53,000 | | 6,000 | 6,000 | 53,000 | | |
| c | Office Rent | -3,500 | | | | -3,500 |
| Bal | | 49,500 | | | 6,000 | 53,000 | | -3,500 |
| d | Revenue Earned | +108,000 | | | +108,000 | |
| Bal | | 157,500| | | 6,000 | 53,000 | 108,000 | -3,500 |
| e | Salaries Expense | -33,400 | | | | -33,400 |
| Bal | | 124,100| | | 6,000 | 53,000 | 108,000 | -36,900 |
| f | Auto Expense | -15,200 | | | | -15,200 |
| Bal | |](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc82dc6b7-49c3-4fc1-9e76-a6bde42076b4%2F70873e77-ed10-4bee-b897-434e4dc29287%2Fpg4pl4a_processed.jpeg&w=3840&q=75)
Transcribed Image Text:### Case Study: Reliance Financial Services - July Financial Transactions
**Overview:**
Seth Feye established Reliance Financial Services on July 1, 20Y2. Reliance Financial Services offers financial planning advice to its clients. Below is a detailed table of the effect of each transaction and the balances after each transaction for July.
**Financial Transactions and Balances Overview:**
| Ref | Transactions | Assets | Liabilities | Stockholders' Equity |
|------|---------------------|---------------------------|-------------------------|---------------------------------------|
| | | Accounts: | Accounts: | Common Stock | Fees Earned | Expenses |
| | | Cash | Receivable | Supplies | Payable | | | |
| | | - - - - - + | - | + - Dividends |
| a | Initial Investment | +53,000 | | +53,000 | | |
| b | Supplies on Credit | | | +6,000 | +6,000 | | | |
| Bal | | 53,000 | | 6,000 | 6,000 | 53,000 | | |
| c | Office Rent | -3,500 | | | | -3,500 |
| Bal | | 49,500 | | | 6,000 | 53,000 | | -3,500 |
| d | Revenue Earned | +108,000 | | | +108,000 | |
| Bal | | 157,500| | | 6,000 | 53,000 | 108,000 | -3,500 |
| e | Salaries Expense | -33,400 | | | | -33,400 |
| Bal | | 124,100| | | 6,000 | 53,000 | 108,000 | -36,900 |
| f | Auto Expense | -15,200 | | | | -15,200 |
| Bal | |
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