Seth Feye established Reliance Financial Services on July 1, 2019. 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, 2019.

2. Prepare a statement of owner’s equity for the month ended July 31, 2019.

3. Prepare a balance sheet as of July 31, 2019.

4. (Optional) Prepare a statement of cash flows for the month ending July 31, 2019

Transcribed Image Text:

Assets Liabilities+ Owner's Equity Seth Feye, Seth Fe Auto Supple Misc. Cash Receivable SuppliesPayableCapital -Drawing Earned Expense Expense - Expense - Expense Expense Accounts Accounts ye, Fees Salaries Rent a. +50,000 b. Bal. 50,000 C. Bal. 46,400 d. +110,000 Bal. 156,400 e. -33,000 Bal. 123,400 f-20,800 Bal. 102,600 9-55,000 Bal. 47,600 h. Bal. 47,600 +50,000 +7,000 7,000 -3,600 3,400 +7,000 7,000 7,000 7,000 7,000 50,000 -3,600 50,000 +110,000 3,400 50,000 110,000 -33,000 -33,000 3,400 50,000 110,000 -16,000 -33,000 -16,000 -4,800 -4,800 7,000 3,400 50,000 110,000 -55,000 7,000 -4,500 2,500 3,400 50,000 10,000 -55,000 33,000 -16,000 -4,800 -4,500 3,400 50,000 110,000 55,000 33,000 -16,000 4,500 4,800 + 34,500 +34500 Bal. 47,600 34500 2,500 j.15,000 B 32,600 34500 2, 3,400 50,000 44,500 -55,000 33,000 -1,000 4,500 -4,800 -15,000 2,500 3,400 50,000-15,00 144,500 -55,000-33,000 -16,000 4,500 -4,800