the financial statements at the end of cayenne realty s first month of operations ar 636788

Cayenne Realty

Income Statement

For the Month Ended June 30, 2008

Fees earned

$ (a)

Expenses:

Wages expense

$34,000

Rent expense

12,800

Supplies expense

(b)

Utilities expense

7,200

Miscellaneous expense

4,400

Total expenses

70,400

Net income

$49,600

Cayenne Realty

Statement of Owner’s Equity

For the Month Ended June 30, 2008

Andrea Merkel, capital, June 1, 2008

$ (c)

Investment on June 1, 2008

$160,000

Net income for June

(d)

(e)

Less withdrawals

24,000

Increase in owner’s equity

(f)

Andrea Merkel, capital, June 30, 2008

(g)

Cayenne Realty

Balance Sheet

30 Jun 08

Assets

Liabilities

Cash

$17,800

Accounts payable

$6,400

Supplies

14,200

Owner’s Equity

Land

160,000

Andrea Merkel, capital

(i)

Total liabilities and

Total assets

(h)

owner’s equity

(j)

Cayenne Realty

Statement of Cash Flows

For the Month Ended June 30, 2008

Cash flows from operating activities:

Cash received from customers

$ (k)

Deduct cash payments for expenses and

payments to creditors

78,200

Net cash flow from operating activities

$ (l)

Cash flows from investing activities:

Cash payments for acquisition of land

(m)

Cash flows from financing activities:

Cash received as owner’s investment

(n)

Deduct cash withdrawal by owner

(o)

Net cash flow from financing activities

(p)

Net cash flow and June 30, 2008, cash balance

(q)