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