Financial statements OBJ. 5 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:

Assets 5 Liabilities 1 Stockholders’ Equity Cash +

Accounts Receivable + Supplies =

Accounts Payable +

Common Stock − Dividends +

Fees Earned −

Salaries Expense −

Rent Expense −

Auto Expense −

Supplies Expense −

Misc.

Expense

a. +50,000 +50,000

b. +7,000 +7,000 Bal. 50,000 7,000 7,000 50,000

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

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

e. –33,000 –33,000 Bal. 123,400 7,000 3,400 50,000 110,000 –33,000

f. −20,800 –16,000 –4,800 Bal. 102,600 7,000 3,400 50,000 110,000 –33,000 –16,000 –4,800 g. −55,000 –55,000 Bal. 47,600 7,000 3,400 50,000 110,000 –55,000 –33,000 –16,000 –4,800 h. –4,500 –4,500 Bal. 47,600 2,500 3,400 50,000 110,000 –55,000 –33,000 –16,000 –4,500 –4,800 i. +34,500 + 34,500 Bal. 47,600 34,500 2,500 3,400 50,000 144,500 –55,000 –33,000 –16,000 –4,500 –4,800 j. –15,000 –15,000 Bal. 32,600 34,500 2,500 3,400 50,000 –15,000 144,500 –55,000 –33,000 –16,000 –4,500 –4,800 Instructions 1. Prepare an income statement for the month ended July 31, 2016.
2. Prepare a retained earnings statement for the month ended July 31, 2016.
3. Prepare a balance sheet as of July 31, 2016.
4. (Optional) Prepare a statement of cash flows for the month ending July 31, 2016.