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+ Stockholders’ Equity Accounts AccountsCommon FeesSalariesRentAutoSuppliesMisc. Cash+Receivable+ Supplies= Payable+ Stock- Dividends+ Earned- Expense- Expense- Expense- Expense- Expensea.+53,000 +53,000 b. +6,000+6,000 Bal.53,000 6,0006,00053,000 c.-3,500 -3,500 Bal.49,500 6,0002,50053,000 d.+108,000 +108,000 Bal.157,500 6,0002,50053,000 108,000 e.-33,400 -33,400 Bal.124,100 6,0002,50053,000 108,000 -33,400 f.-21,100 -15,200 -5,900 Bal.103,000 6,0002,50053,000 108,000 -33,400-15,200 -5,900g.-59,000 -59,000 Bal.44,000 6,0002,50053,000 108,000-59,000-33,400-15,200 -5,900h. -3,900 -3,900 Bal.44,000 2,1002,50053,000 108,000-59,000-33,400-15,200-3,900-5,900i. +50,100 +50,100 Bal.44,00050,1002,1002,50053,000 158,100-59,000-33,400-15,200-3,900-5,900j.-12,500 -12,500 Bal.31,50050,1002,1002,50053,000-12,500158,100-59,000-33,400-15,200-3,900-5,900 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 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". XIncome 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. ### 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 | |

Name: Seth Feye established Reliance Financial Services on July 1, 20Y2. Rel
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Description: 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+

Computation of Fees earned during the month of July Fess Earned = Cash based fees earned during the…

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".

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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	+ Stockholders’ Equity
		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 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".

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.

### 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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