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:

Instructions

1. Prepare an income statement for the month ended July 31, 20Y2.

2. Prepare a statement of stockholders’ equity for the month ended July 31, 20Y2.

3. Prepare a balance sheet as of July 31, 20Y2.

4. Prepare a statement of cash flows for the month ending July 31, 20Y2.

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Assets Stockholders' Equity = Liabilities + Salaries Supplies Accounts Accounts Common Fees Earned Rent Auto Misc. + Receivable + Supplies = Payable + Expense - Expense - Expense - Expense Cash Stock - Dividends + Expense +50,000 +50,000 a. +7,000 +7,000 b. Bal. 50,000 7,000 50,000 7,000 -3,600 -3,600 C. Bal. 7,000 46,400 3,400 50,000 d. +110,000 +110,000 Bal. 156,400 7,000 3,400 50,000 110,000 -33,000 -33,000 e. -33,000 123,400 Bal. 3,400 110,000 7,000 50,000 -16,000 - 16,000 -4,800 f. -20,800 -4,800 - 33,000 Bal. 102,600 7,000 3,400 50,000 110,000 -55,000 -55,000 g. -4,800 -55,000 -33,000 - 16,000 47,600 50,000 110,000 Bal. 7,000 3,400 -4,500 -4,500 h. Bal. -55,000 -33,000 -16,000 -4,500 -4,800 3,400 50,000 47,600 2,500 110,000 + 34,500 +34,500 i. -16,000 -4,500 -55,000 - 33,000 -4,800 Bal. 47,600 144,500 34,500 2,500 3,400 50,000 -15,000 - 15,000 j. Bal. 32,600 2,500 50,000 34,500 3,400 -15,000 144,500 -4,500 -4,800 -55,000 -16,000 –33,000