Question

Finc Accig I Spring 2019-ACCT 2211-01 nancial Income Statement Statement of Owner's Equity Seth Faye established Reiance Financial Services on July 1, 2019 Relance Financial Services offers financial planning advice to is clents The efect of each transaction and the baianca er each ansaction for July tollow Owners Equity Accounts Seth Fees Salaries Rent Auto SuppliesMisc Feye Fays, Foye, Fees Cash Recelivable Supplies Payale. Drawing Earmed Expense Expense Expense Expense Expee 50 000 3,600 2400 a 1546 400 7000 3400 110.000 4800 130 000 3 8

Answer 1

Answer to Part 1 of the question -

                                              Reliance Financial services

                               Income Statement for the month Ended July 31, 2019

Fees earned		$144,500
Expenses :
Salaries expense	$55,000
Rent expense	$33,000
Auto expense	$16,000
Supplies expense	$4,500
Miscellaneous expense	$4,800
Total expenses		113,300
Net Income		$31,200

  Answer to part 2 of the question -                               

                                             Reliance Financial services

                               Statement of owner's equity for the month Ended July 31, 2019

Seth Feye, capital July 1 2019		$0
Investment on July 1, 2019	$50,000
Net income for July	31,200
Total	$81,200
Less Withdrawls	15,000
Increase in owner's equity		66,200
Capital at July 31, 2019		$66,200

Answer to part 3 of the question -                               

                                             Reliance Financial services

                               Balance Sheet for the month Ended July 31, 2019

Assets		Liabilities
Cash	$32,600	Accounts Payable	$3,400
Accounts Receivables	$34,500
Supplies	2,500	Owner's equity
		Capital	66,200
Total assets	$69,600	Total liabilities and equity	$69,600

Answer to part 4 of the question -                               

                                             Reliance Financial services

                               Cashflow statement for the month Ended July 31, 2019

Cashflow from operating activities:
Cash received from customers	$110,000
Less: cash payment for expenses and payments to creditors*	$112,400
Net cashflow used for operating activities		$(2,400)
Cashflow from investing activities		0
Cashflow from financing activities:
Cash received as owner's investment	$50,000
Deduct cash withdrawl by owner	15,000
Net cashflows from financing activites		35,000
Net increase in cash at July 31, 2019		$32,600

*$3,600+$33,000+$22,800+$55,000 these amounts are taken from cash columns shown in the problem