Question

Missing amounts from financial statements The financial statements at the end of Wolverine Realty's first month of operations are as follows: By analyzing the interrelationships among the four financial statements, determine the proper amounts for the missing items. Use the minus sig outflows, cash payments, and decreases in cash in the Statement of Cash Flows. Wolverine Realty Income Statement For the Month Ended April 30, 2040 Fees earned Expenses: $300,000 100,000 Wages expense Rent expense Supplies expense Utilities expense Miscellakeous expense Total expenses 20,000 25,000 (475,000) $275,000 Net income Wolverine Realty Statement of Stockholders' Equity For the Month Ended April 30, 2040 Common Stock Retained Earnings Balances, April 1, 20YO $0 $0 Issued common stock Total $0 Net Income Dividends (125,000) (125,000) Balances. April 30. 2OYO

Answer 1

1. Income Statement -

Wolverine Reality Income Statement For the month Ended April 30, 20YO Fees Earned $ 750,000 Expenses: Wages Expense $ 300,000 Rent Expense $ 100,000 Supplies Expense $ 30,000 Utilities Expense $ 20,000 Miscellaneous Expense $ 25,000 Total Expense $(475,000) Net Income $ 275,000

2. Statement of Stockholder's Equity -

Wolverine Reality Statement of Stockholder's Equity For the month Ended April 30, 2040 Common Retained Total Stock Earnings Balances, April 1, 2010 $ $ $ Issue Common Stock $ 375,000 $ 375,000 Net Income $ 275,000 $275,000 Dividends $(125,000) $(125,000) Balances, April 30, 2040 $375,000 $150,000 $ 525,000

3. Balance Sheet -

Wolverine Reality Balance Sheet April 30, 20YO Assets Cash Supplies Land Total Assets $ 462,500 $ 12,500 $ 150,000 $ 625,000 Liabilities Accounts Payable $ 100,000 Stockholder's Equity Common Stock Retained Earnings Total Stockholder's Equity $ 375,000 $ 150,000 $ 525,000 Total Liabilities and Stockholder's Equity $ 625,000

4. Statement of Cash Flows -

Wolverine Reality Statement of Cash Flows For the month Ended April 30, 2040 Cash Flow from (used for) operating activities: Cash Received from Customer $ 750,000 Cash Paid for Expenses and to creditors $(387,500) Net Cash Flow from operating activities: $ 362,500 Cash Flow from (used for) Investing activities: Cash Paid for Land $(150,000) Cash Flow from (used for) Financing activities: Cash Received from issuing common stock Cash paid for dividends $ 375,000 $(125,000) Net Cash Flow from Financing activities $ 250,000 Net Increase (decrease) in Cash $ 462,500 $ Cash Balance, April 1, 2040 Cash Balance, April 30, 20Y0 $ $ 462,500