Gerbing View Estates Ltd. experienced the following events during the organizing phase and its first month of operations. Some of the events were personal and did not affect the business. Others were transactions of the business.

Requirement 3. At the end of the first month of operations, Gerbing has a number of questions about the financial standing of the business. Explain the following to him. a. How can the business have more cash than retained earnings? The cash balance takes into consideration including cash received from the issuance of shares. Share issuances go into the Common Shares account, which Retained Earnings. Retained Earnings, on the other hand, holds the amounts of the revenues and the expenses, which received or paid in cash. Therefore, there relationship between cash and retaine b. Hon the ass What i What i What i siness has, how much it owes, and what Gerbing's ownership interest is in ? n the assets of the business? Requirement 3. At the end of the first month of operations, Gerbing has a number of questions about the financial standing of the business. Explain the following to him. a. How can the business have more cash than retained earnings? The cash balance takes into consideration the issuance of shares. Share issuances gc Retained Earnings. Retained Earnings, on 1 which received or pai retained earnings. b. How much in total resources the busines the assets of the business. What is the business's total resources? What is the business's total liabilities? including cash received from all amounts owed to the business, all amounts received from all sources, Retained Earnings, and the expenses, ween cash and Iership interest is in What is Gerbing's ownership interest in the assets of the business? Transactions \begin{tabular}{|c|c|} \hline March 4 & DonGerbing,themajorshareholderofthecompany,received$50,200cashfromaninheritance. \\ \hline March 5 & Gerbingdeposited$51,500cashinanewbusinessbankaccounttitledGerbingViewEstatesLtd.ThebusinessissuedcommonsharestoGerbing. \\ \hline March 6 & The business paid $305 cash for letterhead stationery for the new office. \\ \hline March 7 & Thebusinesspurchasedofficefurniture.Thecompanypaidcashof$19,400andagreedtopaytheaccountpayablefortheremainder,$4,940,withinthreemonths. \\ \hline March 10 & GerbingsoldCDMshares,whichGerbinghadownedforseveralyears,receiving$31,200cashfromGerbingsstockbroker. \\ \hline March 11 & Gerbingdepositedthe$31,200cashfromthesaleoftheCDMsharesinhispersonalbankaccount. \\ \hline March 12 & ArepresentativeofalargecompanytelephonedGerbingandtoldhimofthecompanysintentiontoputadownpaymentof$9,900onalot. \\ \hline March 18 & Gerbingfinishedarealestatedealonbehalfofaclientandsubmittedthebillforservices,$10,050.Gerbingexpectstocollectfromthisclientwithintwoweeks. \\ \hline March 21 & ThebusinesspaidhalfitsaccountpayableforthefurniturepurchasedonMarch7. \\ \hline March 25 & The business paid office rent of $3,750. \\ \hline March 31 & The business declared and paid a cash dividend of $1,910. \\ \hline \end{tabular} Requirement 3 . At the end of the first month of operations, Gerbing has a number of questions about the financial standing of the business. Explain the following to him. a. How can the business have more cash than retained earnings? The cash balance takes into consideration including cash received from the issuance of shares. Share issuances go into the Common Shares account, which Retained Earnings. Retained Earnings, on the other hand, holds the amounts of the re which received or paid in cash. Therefore, there relations retained earnings. b. How much in total resources the business has, how much it owes, and what Gerbin the assets of the business. What is the business's total resources? has nothing to do with is part of What is the business's total liabilities? What is Gerbing's ownership interest in the assets of the business? Requirement 3. At the end of the first month of operations, Gerbing has a number of questions about the financia standing of the business. Explain the following to him. a. How can the business have more cash than retained earnings? The cash balance takes into consideration including cash received from the issuance of shares. Share issuances go into the Common Shares account, which Retained Earnings. Retained Earnings, on the other hand, holds the amounts of the revenues and the expenses, which received or paid in cash. Therefore, there relationship between cash and retained earnings. b. How much in total resources the business has, how much it owes, ? s ownership interest is in the assets of the business. What is the business's total resources? What is the business's total liabilities? What is Gerbing's ownership interest in the assets of the business