Seth Feye established Reliance Financial Services on July 1, 2016. Reliance Financial Services offers financial planning advice to its clients. The effect of each transaction and the balances after each transaction for July follow:

Instructions
1. Prepare an income statement for the month ended July 31, 2016.
2. Prepare a statement of owner's equity for the month ended July 31, 2016.
3. Prepare a balance sheet as of July 31, 2016.
4. Prepare a statement of cash flows for the month ending July 31, 2016.

Transcribed Image Text:

Liabilities + Owner's Equity Seth Salaries Rent Auto Supplies Misc Cash Receivable+Supplies- Payable Capital Drawing+EarnedExpense -Expense Expense Expense Expense +50,000 110,000 55,000 33,000 16,000 10,000 ,00 33,000 16,000 4500 4,800 +34,500 44,500 55,000 33,000 16,000 4,500 4,800 15,000 Bal 3260000 200S 50,000-15,000 144,500 55,000 33,000 16,000 4500 4,800