Fransactions and Financial Statements Roger Smith established an insurance agency on July 1, 2005, and completed the following transactions during July: a Opened a business bank account in the name of Smith Insurance Inc, with a deposit of $52,000 in exchange for common stock . Borrowed $23,500 by Issuing a note payable C. Received cash from fees earned, $29.000 d. Pald rent on office and equipment for the month, $3,200 Pald automobile expense for the month $2,000, and miscellaneous expense 51,000 1. Paid office salaries, $4,000 9. Pald interest on the note payable, 5100 h. Purchased land as a future building site paying cath of $50,500 1. Paid dividends $4.000. Instructions: 1. Indicate the effect of each transaction and the balances ter each transaction, using the integrated financial statement framework. After transactions recured, enter Net income under the income Statement column. If an amount box does not require an entry, leave it blonk Enter account decreases and met ash outflows as negative amounts using the minus sign Halance Sheet Assets Liabilities Stockholders' Equity Transaction Cash Land v - Notis Payable - Common Stock Retained in Issued common stock 52.000 1. Issued note payable 23.500 75.500 Fees narund 29.000 Falancas 104,500 ON h Determine the elements affected in the transactions in mind that the effect of the case 2. Which ot the folding how the correct strict on the accounting nation for any panie that is paid when Every traction to decrease the saitescrotein Incontent For the south Endine JOYS 3. Prepare an income statement for July Smith Insurance Inc. Income Statement For the Month Ending July 31, 2015 Revenues Fees earned 29,000 Expenses: Salary: expense 4.500 X Rent expense 3,000 X Auto expense 1.900 X Interest expense 100 Miscellaneous expense 900 x Total expenses 10.400 X Net Income 10.600 X F Cheyo An income statement reports revenues and expenses. When the revenues are larger than the expenses, the difference is net income Prepare a statement of stockholders' equity for July. If your answer is zero enter "0". Smith Insurance Inc. Statement of Stockholders' Equity For the Month Ending July 31, 2015 Common Stock Retained Earnings Balances, July 1, 2045 0 o Issued common stock 52.000 Total 0 0 52.000 Net income 0 18,600 X 18,600 Dividends 0 3.800 3,800 Balances, July 31, 2015 52.000 14,800 66,800 X Feedback Check My Work Recall that the net income on the income statement must be equal to the net effects of revenues and expenses income less dividends is equal to ending retained earnings. 4. Prepare a balance sheet as of July 31, 2045. Smith Insurance Inc. Balance Sheet July 31, 2015 Assets Cash 32,300 X Land 58,000 x Total assets 90,300 X Liabilities Notes payable 23,500 Common stock Stockholders' Equity 52.000 Retained earnings 14.300 X Total stockholders' equity 66,800 X Total liabilities and stockholders equity 90.300 X Chexy Wor Recall that the balance sheet is a formal representation of the accounting equation, such that total assets must equalth items owned by the company while liabilities are debts owed to creditors and stockholde LOUS Show How Video 5. Prepare a statement of cash flows for July. Use the minus sign to indicate cash outflows, decreases in cash, or cash payments. If your answer is zero enter "o". Smith Insurance Inc Statement of Cash Flows For the Month Ending July 31, 2015 Cash flows from used for) Operating activities Cash received from operating activities 29.000 Cash paid for operating activities 10.400 x Net cash lows from operating activities v 100X Cash flows from (used to investing acties Cash paid for land 58.000 x Cashows trom used for financing activities Cash received from issuing common stock 52100 Cash received from issuing note payable v 23.500 Cash paid as dividends 000X Met cash flows from financing activities Net Increase in cash during July LI X X Cassy 1. 2015 Cash as of July 31, 2015 32.300 X