The financial statements at the end of Gallia Consulting Inc.’s first month of operations are shown…
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The financial statements at the end of Gallia Consulting 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 (t). Gallia Consulting Inc.
Income Statement
For the Month Ended June 30, 2004
Fees earned
$ (a)
Operating expenses:
Wages expense
$4,500
Rent expense
2,800
Utilities expense
1,900
Interest expense
200
Miscellaneous expenses
600
Total operating expenses
10,000
Net income
$ (b)
Gallia Consulting Inc.
Retained Earnings Statement
For the Month Ended June 30, 2004
Retained earnings, June 1, 2004
$
(c)
Net income for June
$ (d)
Less dividends
(e)
(f)
Retained earnings, June 30, 2004
$
(g)
Gallia Consulting Inc.
Balance Sheet
June 30, 2004
Assets
Cash
$ (h)
Land
18,000
Total assets
$46,500
Liabilities
Notes payable
$15,000
Stockholders’ Equity
Capital stock
$25,000
Retained earnings .
(i)
(j)
Total liabilities and stockholders’ equity
$ (k)
Gallia Consulting Inc.
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
(m)
Net cash flows from operating activities
$ 8,500
Cash flows from investing activities:
Cash payment for purchase of land
$(18,000)
Cash flows from financing activities:
Cash received from sale of capital stock
$ (n)
Cash received from notes payable
(o)
$ (p)
Deduct cash dividends
2,000
Net cash flows from financing activities
(q)
Net increase in cash
$ (r)
June 1, 2004 cash balance
(s)
June 30, 2004 cash balance
$ (t)