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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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. +58,000       +58,000              
b.     +6,000 +6,000                
                         
Bal. 58,000   6,000 6,000 58,000              
c. -3,600     -3,600                
                         
Bal. 54,400   6,000 2,400 58,000              
d. +104,000           +104,000          
                         
Bal. 158,400   6,000 2,400 58,000   104,000          
e. -34,800               -34,800      
                         
Bal. 123,600   6,000 2,400 58,000   104,000   -34,800      
f. -21,900                 -15,400   -6,500
                         
Bal. 101,700   6,000 2,400 58,000   104,000   -34,800 -15,400   -6,500
g. -56,000             -56,000        
                         
Bal. 45,700   6,000 2,400 58,000   104,000 -56,000 -34,800 -15,400   -6,500
h.     -3,000               -3,000  
                         
Bal. 45,700   3,000 2,400 58,000   104,000 -56,000 -34,800 -15,400 -3,000 -6,500
i.   +50,400         +50,400          
                         
Bal. 45,700 50,400 3,000 2,400 58,000   154,400 -56,000 -34,800 -15,400 -3,000 -6,500
j. -14,000         -14,000            
                         
Bal. 31,700 50,400 3,000 2,400 58,000 -14,000 154,400 -56,000 -34,800 -15,400 -3,000 -6,500
                         
 
  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".
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