PR 1-6B Missing amounts from financial statements
The financial statements at the end of Cyber Realty’s first month of operations are shown below.
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Cyber Realty |
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Income Statement |
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For the Month Ended October 31, 2012 |
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Fees earned |
$250,000 |
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Expenses: |
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Wages expense |
$ (a) |
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Rent expense |
30,000 |
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Supplies expense |
11,000 |
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Utilities expense |
9,000 |
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Miscellaneous expense |
3,000 |
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Total expenses |
$180,000 |
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Net income |
$ (b) |
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Cyber Realty |
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Statement of Owner’s Equity |
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For the Month Ended October 31, 2012 |
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Kendra Garcia, capital, October 1, 2012 |
$ (c) |
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Investment on October 1, 2012 |
$ (d) |
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Net income for October |
(e) |
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$ (f ) |
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Less withdrawals |
(g) |
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Increase in owner’s equity |
(h) |
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Kendra Garcia, capital, October 31, 2012 |
$ (i) |
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Cyber Realty |
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Balance Sheet |
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October 31, 2012 |
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Assets |
Liabilities |
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Cash |
$77,000 |
Accounts payable |
$30,000 |
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Supplies |
8,000 |
Owner’s Equity |
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Land |
(j) |
Kendra Garcia, capital |
(l) |
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Total assets |
$ (k) |
Total liabilities and owner’s equity |
$ (m) |
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Cyber Realty |
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Statement of Cash Flows |
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For the Month Ended October 31, 2012 |
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Cash flows from operating activities: |
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Cash received from customers |
$ (n) |
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Deduct cash payments for expenses and payments to creditors |
158,000 |
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Net cash flow from operating activities |
$0 |
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Cash flows from investing activities: |
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Cash payments for acquisition of land |
-75,000 |
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Cash flows from financing activities: |
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Cash received as owner’s investment |
$100,000 |
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Deduct cash withdrawal by owner |
40,000 |
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Net cash flow from financing activities |
(p) |
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Net cash flow and October 31, 2012, cash balance |
$ (q) |
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Instructions
By analyzing the interrelationships among the four financial statements, determine the proper amounts for (a) through (q).