the financial statements at the end of ruby river realty rsquo s first month of oper 636948

Ruby River Realty

Income Statement

For the Month Ended June 30, 2004

Fees earned . .

$23,500

Operating expenses:

Wages expense .

$ (a)

Rent expense . .

4,400

Utilities expense

1,350

Miscellaneous expense .

825

Total operating expenses .

11,950

Net income . .

$ (b)

Ruby River Realty

Retained Earnings Statement

For the Month Ended June 30, 2004

Net income for June . .

$ (c)

Less dividends

(d)

Retained earnings, June 30, 2004 .

$ (e)

Ruby River Realty

Balance Sheet

June 30, 2004

Assets

Cash .

$14,750

Prepaid expenses .

1,000

Land .

(f )

Total assets . .

$ (g)

Liabilities

Accounts payable .

$ 1,200

Stockholders’ Equity

Capital stock .

$ (h)

Retained earnings .

(i)

(j)

Total liabilities and stockholders’ equity . .

$ (k)

Ruby River Realty Statement of Cash Flows

For the Month Ended June 30, 2004

Cash flows from operating activities:

Cash received from customers

$ (l)

Deduct cash payments for expenses and payments to creditors

11,750

Net cash flow from operating activities

$ (m)

Cash flows from investing activities:

Cash payments for acquisition of land

$ 36,000)

Cash flows from financing activities:

Cash received from issuing capital stock

$45,000

Deduct dividends

6000

Net cash flow from financing activities

(n)

Net cash flow and June 30, 2004 cash balance

$(0)