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lv 1. 20Y5, and completed the folle P2-1 Transactions and financial statements Les Stanley established an insurance agency on July 1, 2045, and completed, nce Inc., with a deposit of transactions during July: a. Opened a business bank account in the name of Stanley Insurance Inc. with $60,000 in exchange for common stock. b. Borrowed $100,000 by issuing a note payable. c. Received cash from fees earned, $30,000. d. Paid rent on office and equipment for the month, $5,000. e. Paid automobile expense for the month, $2,500, and miscellaneous expense, $1,000. f. Paid office salaries, $6,500. g. Paid interest on the note payable, $500. h. Purchased land as a future building site, paying cash of $120,000. i. Paid dividends, $3,000.

Answer 1

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Balance Sheet solution: 0 Stock Holders Statement Income Assets Retained Statement of Cash Flows particulars - = equity common + Liabilities + Notes payable & cash + Land a.issued Stock F $ 600oo. $60000 Есесс F slooooo StoccoC COODC $ 100 000 $ 6oooo $30000 $30000 $30000 600DO 30 000 sooo) $ 100 000 $5000) do o ($5000) b. Issued Notes payable Balances c. Fees earredo Balances do Rent expense Bolances e-pood expenses Balances f. paid salary Balances g. pad interest exp $160000 $30000 $190000 (B5000) & 185000 (3500) $181500 $ 6000 1000CO 25000 ($3.500) (2560) o (43500) IcocUD .660 ott $21500 (54500) ($1000) ($6500) 0 ($656) $ tocco 160000 $15.000 $500) o ($500) ($500) $1450 10000 $60000 Balonces to ($120000) $175.000 ($500) $174560 (1200) 954500 ($3000) $51.500 $12.000 $120000 $IODO purchased land Balances paid dividends Balances 6ooo s 14500 3000) i F ($3000) $12000 100000 * 6.000 tisoo $ 14500 Increase in Net income $5.500 Cash

investments @ Stock and holders revenues right and to business decreased by assets are dividends increased by and expenses. Stanley Insurance Inc Income statement For the month Ended July 31, 2015 Amount Amount particulars Revenues : Fees earned $ 30000 Expense: $ 6500 & Sono 2500 & Soo Salary expense Ront expense Auto expense Interest expense 3. У розе Total expenses Net income - 1000 $(15 soo) $ 14500 Stanley Insurance Inc statement of stock holders equity July 31, 2045 particolars Common stock Retained earnings Total Balances, Joly 1, 2015 Issued common Stock Net income & 60000 $0 & 60000 $14500 $3000) Dividends $ 14500 ($3000) 1, Balances, Joly 2015 $ 60000 $71500 Soo

Stanley Insurance Inc Balance Sheet for the Month Ended July 31, 2015 particulars Amount Amount Assets cash Land poral Assets $51500 $120000 $ 171500 Liabilities Notes payable $100000 Stock holders equity common Retained Stock earnings $ 60000 $ Woo Total stock holders equity 871500 Toral liabilities & stock holders equity $ 171500

Stanley Statement For the Insurance Inc of cash flows Month Ended July 31, 2015 Amount Amount particulars cash flows from operating Activities : cash receipts from operating activities cash payments for operating activities Net cash flows from operating Activities $30000 (oo دیا و 114500 $120000) $ 60000 $ 100 000 cash flows from Investing activities : cash payment for land cash flows from financing Activities : cash receipts from issuing capital Stock cash receipts from note payable cash payments for dividends Net cast flows from financing activities Net increase in cast during Joly Cast as of Joly 1, 2015 cash as of July 31, 2015 - (2009) $ 157000 $ 51500 وہ کیایی