The financial statements at the end of Harvest Realty Inc.’s first month of operations are shown below. By analyzing the interrelationships between the financial statements, fill in the proper amounts for (a) through (s).
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Harvest Realty Inc. Income Statement For the Month Ended March 31, 2004 |
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Fees earned |
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$ (a) |
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Operating expenses: |
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Wages expense |
$3,680 |
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Rent expense |
2,000 |
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Utilities expense |
(b) |
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Interest expense |
200 |
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Miscellaneous expenses |
440 |
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Total operating expenses |
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7,500 |
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Net income |
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$ (c) |
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Harvest Realty Inc. Retained Earnings Statement For the Month Ended March 31, 2004 |
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Retained earnings, March 1, 2004 |
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$ |
(d) |
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Net income for March |
$5,500 |
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Less dividends |
(e) |
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(f) |
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Retained earnings, March 31, 2004 |
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$ |
(g) |
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Harvest Realty Inc. Balance Sheet March 31, 2004 |
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Assets |
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Cash |
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$ (h) |
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Land |
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20,000 |
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Total assets |
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$26,500 |
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Liabilities |
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Notes payable |
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$12,000 |
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Stockholders’ Equity |
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Capital stock |
$ (i) |
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Retained earnings |
(j) |
(k) |
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Total liabilities and stockholders’ equity |
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$ (l) |
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Harvest Realty Inc. Statement of Cash Flows For the Month Ended March 31, 2004 |
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Cash flows from operating activities: |
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Cash received from customers |
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$ 13,000 |
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Deduct cash payments for expenses |
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7,500 |
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Net cash flows from operating activities |
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$ (m) |
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Cash flows from investing activities: |
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Cash payment for purchase of land |
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$(20,000) |
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Cash flows from financing activities: |
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Cash received from sale of capital stock |
$10,000 |
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Cash received from notes payable |
(n) |
$ (o) |
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Deduct cash dividends |
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1,000 |
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Net cash flows from financing activities |
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(p) |
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Net increase in cash |
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$ (q) |
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March 1, 2004 cash balance |
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(r) |
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March 31, 2004 cash balance . |
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$ (s) |