The financial statements at the end of Harvest Realty Inc.’s first month of operations are shown… 1 answer below »

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). Harvest Realty Inc.

Income Statement

For the Month Ended March 31, 2004

Fees earned

 

$ (a)

Operating expenses:

 

 

Wages expense

$3,680

 

Rent expense

2,000

 

Utilities expense

(b)

 

Interest expense

200

 

Miscellaneous expenses

440

 

Total operating expenses

 

7,500

Net income

 

$ (c)

  Harvest Realty Inc.

Retained Earnings Statement

For the Month Ended March 31, 2004

Retained earnings, March 1, 2004

 

$

(d)

Net income for March

$5,500

 

 

Less dividends

(e)

 

(f)

Retained earnings, March 31, 2004

 

$

(g)

  Harvest Realty Inc.

Balance Sheet

March 31, 2004

Assets

 

 

Cash

 

$ (h)

Land

 

20,000

Total assets

 

$26,500

Liabilities

 

 

Notes payable

 

$12,000

Stockholders’ Equity

 

 

Capital stock

$ (i)

 

Retained earnings

(j)

(k)

Total liabilities and stockholders’ equity

 

$ (l)

  Harvest Realty Inc.

Statement of Cash Flows

For the Month Ended March 31, 2004

Cash flows from operating activities:

 

 

Cash received from customers

 

$ 13,000

Deduct cash payments for expenses

 

7,500

Net cash flows from operating activities

 

$ (m)

Cash flows from investing activities:

 

 

Cash payment for purchase of land

 

$(20,000)

Cash flows from financing activities:

 

 

Cash received from sale of capital stock

$10,000

 

Cash received from notes payable

(n)

$ (o)

Deduct cash dividends

 

1,000

Net cash flows from financing activities

 

(p)

Net increase in cash

 

$ (q)

March 1, 2004 cash balance

 

(r)

March 31, 2004 cash balance .

 

$ (s)

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