Financial statements Obj. 5 Seth Feye established Reliance Financial Services on July 1, 20Y2. Reliance Financial Services offers financial planning advice to its clients. The effect of each transaction and the balances after each transaction for July follow:

Assets 5Liabilities1 Stockholders’ Equity Cash 1 Accounts Receivable 1 Supplies 5 Accounts Payable 1 Common Stock − Dividends 1 Fees Earned −
Salaries Expense −
Rent Expense −
Auto Expense −
Supplies Expense −
Misc.
Expense

a. 150,000 150,000

b. 17,000 17,000 Bal. 50,000 7,000 7,000 50,000

c. −3,600 −3,600 Bal. 46,400 7,000 3,400 50,000

d. 1110,000 1110,000 Bal. 156,400 7,000 3,400 50,000 110,000

e. 233,000 233,000 Bal. 123,400 7,000 3,400 50,000 110,000 233,000

f. −20,800 216,000 24,800 Bal. 102,600 7,000 3,400 50,000 110,000 233,000 216,000 24,800 g. −55,000 255,000 Bal. 47,600 7,000 3,400 50,000 110,000 255,000 233,000 216,000 24,800 h. 24,500 24,500 Bal. 47,600 2,500 3,400 50,000 110,000 255,000 233,000 216,000 24,500 24,800 i. 134,500 1 34,500 Bal. 47,600 34,500 2,500 3,400 50,000 144,500 255,000 233,000 216,000 24,500 24,800 j. 215,000 215,000 Bal. 32,600 34,500 2,500 3,400 50,000 215,000 144,500 255,000 233,000 216,000 24,500 24,800.

Instructions 1 Prepare an income statement for the month ended July 31, 20Y2.
2 Prepare a statement of stockholders’ equity for the month ended July 31, 20Y2.
3 Prepare a balance sheet as of July 31, 20Y2.
4 (Optional) Prepare a statement of cash flows for the month ending July 31, 20Y2.

AppendixLO1