Question

Required information [The following information applies to the questions displayed below) Sanyu Sony started a new business and completed these transactions during December Dec. 1 Sanyu Sony transferred $64,800 cash from a personal savings account to a checking account in the name of Sony Electric in exchange for its common stock. 2 The company rented office space and paid $1,200 cash for the December rent. 3 The company purchased $13,700 of electrical equipment by paying $5,500 cash and agreeing to pay the $8,200 balance in 30 days. 5 The company purchased office supplies by paying $900 cash. 6 The company completed electrical work and immediately collected $1,700 cash for these services. 8 The company purchased $2,810 of office equipment on credit. 15 The company completed electrical work on credit in the amount of $7,000. 18 The company purchased $490 of office supplies on credit. 20 The company paid $2,810 cash for the office equipment purchased on December 8. 24 The company billed a client $900 for electrical work completed; the balance is due in 30 days. 28 The company received $7,000 cash for the work completed on December 15. 29 The company paid the assistant's salary of $1,800 cash for this month. 30 The company paid $550 cash for this month's utility bill. 31 The company paid $930 cash in dividends to the owner (sole shareholder).

Answer 1

1. Income Statement -

SONY ELECTRIC Income Statement For the Month Ended December 31 Service Revenue $ 16,600 Expenses: Rent Expenses Salaries Expense Utilities Expense Total Expenses $ 1,200 $ 1,800 $ 550 $ 3,550 Net Earnings $ 13,050

2. Statement of Retained Earnings -

SONY ELECTRIC Statement of Retained Earnings For the Month Ended December 31 Retained Earnings $ Add: Net Income $ 13,050 Less: Dividends $ (930) $ 12,120 Retained Earnings $ 12,120

3. Balance Sheet -

$ 8,690 Assets Cash Office Supplies Accounts Receivable SONY ELECTRIC Balance Sheet December 31 Liabilities $ 59,810 Accounts Payable $ 1,390 $ 7,900 Total Liabilities $ 13,700 Equity $ 2,810 Common Stock Retained Earnings Total Equity $ 8,690 Electrical Equipment Office Equipment $ 64,800 $ 12,120 $ 76,920 Total Assets $ 85,610 Total Liabilities and Equity $ 85,610

4. Statement of Cash Flows -

SONY ELECTRIC Statement of Cash Flows For the Month Ended December 31 Cash Flow From Operating Activities Cash Collected from Customers $ 8,700 Cash Paid to Expenses $ (2,650) Cash Paid to Employees $ (1,800) Net Cash Flow From Operating Activities $ 4,250 Cash Flow From Investing Activities Purchase of Equipment $ (8,310) Net Cash Flow From Investing Activities Cash Flow From Financing Activities Issue of Common Stock Dividend Paid $ (8,310) $ 64,800 $ (930) Net Cash Flow From Financing Activities $ 63,870 Change in Cash $ 59,810 Cash at the beginning Cash at the end $ - $ 59,810