Jose Loder established Bronco Consulting on August 1, 20Y2. The effect of each transaction and the balances after each transaction for August follow:

	Assets					=	Liabilities	+	Owner's Equity
	Cash	+	Accounts Receivable	+	Supplies	=	Accounts Payable	+	Jose Loder Capital	-	Jose Loder Drawing	+	Fees Earned	-	Salaries Expense	-	Rent Expense	-	Auto Expense	-	Supplies Expense	-	Misc. Expense
a.	+38,270								+38,270
b.					+3,330		+3,330
Bal.	38,270				3,330		3,330		38,270
c.	+37,500												+37,500
Bal.	75,770				3,330		3,330		38,270				37,500
d.	-10,300																-10,300
Bal.	65,470				3,330		3,330		38,270				37,500				-10,300
e.	-1,610						-1,610
Bal.	63,860				3,330		1,720		38,270				37,500				-10,300
f.			+26,400										+26,400
Bal.	63,860		26,400		3,330		1,720		38,270				63,900				-10,300
g.	-7,270																		-4,980				-2,290
Bal.	56,590		26,400		3,330		1,720		38,270				63,900				-10,300		-4,980				-2,290
h.	-15,300														-15,300
Bal.	41,290		26,400		3,330		1,720		38,270				63,900		-15,300		-10,300		-4,980				-2,290
i.					-1,900																-1,900
Bal.	41,290		26,400		1,430		1,720		38,270				63,900		-15,300		-10,300		-4,980		-1,900		-2,290
j.	-9,600										-9,600
Bal.	31,690		26,400		1,430		1,720		38,270		-9,600		63,900		-15,300		-10,300		-4,980		-1,900		-2,290

Required:

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1. Prepare an income statement for the month ended August 31, 20Y2.

Accounts receivableAccounts payableCashJose Loder, capitalJose Loder, drawingFees earnedFees earned		$Fees earned
Expenses:
Accounts payableAccounts receivableJose Loder, capitalJose Loder, drawingSalaries expenseSuppliesSalaries expense	$Salaries expense
Accounts receivableCashFees earnedRent expenseJose Loder, capitalJose Loder, drawingRent expense	Rent expense
Accounts payableAccounts receivableAuto expenseCashJose Loder, capitalSuppliesAuto expense	Auto expense
Accounts payableCashFees earnedJose Loder, drawingSupplies expenseSuppliesSupplies expense	Supplies expense
Accounts payableCashFees earnedJose Loder, capitalJose Loder, drawingMiscellaneous expenseSuppliesMiscellaneous expense	Miscellaneous expense
Total expenses		fill in the blank 80a60403500001e_13
Accounts payableCashFees earnedNet incomeNet lossNet income		$Net income

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1. An income statement reports the revenues and expenses. When revenues are larger than the expenses, the difference is net income.

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2. Prepare a statement of owner's equity for the month ended August 31, 20Y2. If an answer is zero, enter "0".

Accounts payableJose Loder, capital, August 1, 20Y2Jose Loder, capital, August 31, 20Y2WithdrawalsCashJose Loder, capital, August 1, 20Y2		$Jose Loder, capital, August 1, 20Y2
Accounts receivableJose Loder, capital, August 1, 20Y2Jose Loder, capital, August 31, 20Y2CashInvestment on August 1, 20Y2Investment on August 1, 20Y2	$Investment on August 1, 20Y2
Jose Loder, capital, August 1, 20Y2Jose Loder, capital, August 31, 20Y2Net income for AugustNet loss for AugustNet income for August	Net income for August
Jose Loder, capital, August 1, 20Y2Jose Loder, capital, August 31, 20Y2CashWithdrawalsWithdrawals	Withdrawals
CashDecrease in owner's equityIncrease in owner's equityJose Loder, capital, August 1, 20Y2Jose Loder, capital, August 31, 20Y2Increase in owner's equity		Increase in owner's equity
Jose Loder, capital, August 1, 20Y2Jose Loder, capital, August 31, 20Y2CashInvestment onAugust 1, 20Y2Net income for AugustJose Loder, capital, August 31, 20Y2		$Jose Loder, capital, August 31, 20Y2

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3. Prepare a balance sheet as of August 31, 20Y2. When entering assets, enter them in order of liquidity.

Assets
Accounts payableAuto expenseCashFees earnedJose Loder, capitalJose Loder, drawingCash	$Cash
Accounts payableAccounts receivableJose Loder, capitalJose Loder, drawingMiscellaneous expenseRent expenseAccounts receivable	Accounts receivable
Accounts payableFees earnedJose Loder, capitalJose Loder, drawingSupplies expenseSuppliesSupplies	Supplies
Total assets	$fill in the blank 99647f0bc064f87_7
Liabilities
Accounts payableAccounts receivableCashJose Loder, capitalSupplies expenseFees earnedAccounts payable	$Accounts payable
Owner's Equity
Accounts payableCashJose Loder, capitalJose Loder, drawingMiscellaneous expenseRent expenseJose Loder, capital	Jose Loder, capital
Total liabilities and owner's equity	$fill in the blank 99647f0bc064f87_12

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3. Follow Example Exercise 1-6. Recall that the balance sheet is a formal presentation of the accounting equation, such that total assets must equal total liabilities and owner's equity. Assets are items owned by the company, while liabilities are debts owed to creditors, and owner's equity represents the rights of the owner.

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4. Prepare a statement of cash flows for the month ending August 31, 20Y2. For those boxes in which no entry is required, enter "0". Use the minus sign to indicate cash outflows, cash payments, and decreases in cash.

Cash flows from (used for) operating activities:
Cash received from owner as investmentCash received from customersCash withdrawal by ownerCash received from customers	$Cash received from customers
Cash received as owner's investmentCash paid for expenses and to creditorsCash withdrawal by ownerCash paid for expenses and to creditors	Cash paid for expenses and to creditors
Net cash flow from operating activitiesNet cash flow used for operating activitiesNet cash flow from operating activities		$Net cash flow from operating activities
Cash flows from (used for) investing activities		fill in the blank 9acaba030049f82_7
Cash flows from (used for) financing activities:
Cash received from owner as investmentCash received from customersCash paid for expenses and to creditorsCash received from owner as investment	$Cash received from owner as investment
Cash received from customersCash paid for expenses and to creditorsCash withdrawal by ownerCash withdrawal by owner	Cash withdrawal by owner
Net cash flow from financing activitiesNet cash flow used for financing activitiesNet cash flow from financing activities		Net cash flow from financing activities
Net decrease in cashNet increase in cashNet increase in cash		$Net increase in cash
Cash balance, August 1, 20Y2		fill in the blank 9acaba030049f82_16
Cash balance, August 31, 20Y2		$fill in the blank 9acaba030049f82_17