Les Stanley established an insurance agency on July 1, 20Y5, and completed the following transactions during July Opened a business bank account in the name of Stanley Insurance Inc , with a deposit of $50,500 in exchange for common stock Borrowed $24,500 by issuing a note payable Received cash from fees earned, $27,500 Paid rent on office and equipment for the month, $2,900 Paid automobile expense for the month, $1,700, and miscellaneous expense, $600 Paid office salaries, $4,100 Paid interest on the note payable, $100 Purchased land as a future building site, $54,500 Paid dividends, $4,200 Instructions 1 Indicate the effect of each transaction and the balances after each transaction, using the integrated financial statement framework If an amount box does not require an entry, leave it blank Enter account decreases and net cash outflows as negative amounts Statement of Cash Flows Balance Sheet Assets Liabilities Stockholders' Equity Cash Land Notes Payable Common Stock Retained Earnings a Issued common stock fill in the blank 2cd740095054020 7 fill in the blank 2cd740095054020 8 fill in the blank 2cd740095054020 9 fill in the blank 2cd740095054020 10 fill in the blank 2cd740095054020 11 b Issued note payable fill in the blank 2cd740095054020 13 fill in the blank 2cd740095054020 14 fill in the blank 2cd740095054020 15 fill in the blank 2cd740095054020 16 fill in the blank 2cd740095054020 17 Balances fill in the blank 2cd740095054020 18 fill in the blank 2cd740095054020 19 fill in the blank 2cd740095054020 20 fill in the blank 2cd740095054020 21 fill in the blank 2cd740095054020 22 c Fees earned fill in the blank 2cd740095054020 24 fill in the blank 2cd740095054020 25 fill in the blank 2cd740095054020 26 fill in the blank 2cd740095054020 27 fill in the blank 2cd740095054020 28 Balances fill in the blank 2cd740095054020 29 fill in the blank 2cd740095054020 30 fill in the blank 2cd740095054020 31 fill in the blank 2cd740095054020 32 fill in the blank 2cd740095054020 33 d Rent expense fill in the blank 2cd740095054020 35 fill in the blank 2cd740095054020 36 fill in the blank 2cd740095054020 37 fill in the blank 2cd740095054020 38 fill in the blank 2cd740095054020 39 Balances fill in the blank 2cd740095054020 40 fill in the blank 2cd740095054020 41 fill in the blank 2cd740095054020 42 fill in the blank 2cd740095054020 43 fill in the blank 2cd740095054020 44 e Paid expenses fill in the blank 2cd740095054020 46 fill in the blank 2cd740095054020 47 fill in the blank 2cd740095054020 48 fill in the blank 2cd740095054020 49 fill in the blank 2cd740095054020 50 Balances fill in the blank 2cd740095054020 51 fill in the blank 2cd740095054020 52 fill in the blank 2cd740095054020 53 fill in the blank 2cd740095054020 54 fill in the blank 2cd740095054020 55 f Paid salary expense fill in the blank 2cd740095054020 57 fill in the blank 2cd740095054020 58 fill in the blank 2cd740095054020 59 fill in the blank 2cd740095054020 60 fill in the blank 2cd740095054020 61 Balances fill in the blank 2cd740095054020 62 fill in the blank 2cd740095054020 63 fill in the blank 2cd740095054020 64 fill in the blank 2cd740095054020 65 fill in the blank 2cd740095054020 66 g Paid interest expense fill in the blank 2cd740095054020 68 fill in the blank 2cd740095054020 69 fill in the blank 2cd740095054020 70 fill in the blank 2cd740095054020 71 fill in the blank 2cd740095054020 72 Balances fill in the blank 2cd740095054020 73 fill in the blank 2cd740095054020 74 fill in the blank 2cd740095054020 75 fill in the blank 2cd740095054020 76 fill in the blank 2cd740095054020 77 h Purchased land fill in the blank 2cd740095054020 79 fill in the blank 2cd740095054020 80 fill in the blank 2cd740095054020 81 fill in the blank 2cd740095054020 82 fill in the blank 2cd740095054020 83 Balances fill in the blank 2cd740095054020 84 fill in the blank 2cd740095054020 85 fill in the blank 2cd740095054020 86 fill in the blank 2cd740095054020 87 fill in the blank 2cd740095054020 88 i Paid dividends fill in the blank 2cd740095054020 90 fill in the blank 2cd740095054020 91 fill in the blank 2cd740095054020 92 fill in the blank 2cd740095054020 93 fill in the blank 2cd740095054020 94 Balances, July 31 fill in the blank 2cd740095054020 95 fill in the blank 2cd740095054020 96 fill in the blank 2cd740095054020 97 fill in the blank 2cd740095054020 98 fill in the blank 2cd740095054020 99 Statement of Cash Flows Income Statement a Financing fill in the blank 2cd740095054020 101 c Fees earned fill in the blank 2cd740095054020 103 b Financing fill in the blank 2cd740095054020 105 d Rent expense fill in the blank 2cd740095054020 107 c Operating fill in the blank 2cd740095054020 109 e Auto expense fill in the blank 2cd740095054020 111 d Operating fill in the blank 2cd740095054020 113 e Miscellaneous expense fill in the blank 2cd740095054020 115 e Operating fill in the blank 2cd740095054020 117 f Salary expense fill in the blank 2cd740095054020 119 f Operating fill in the blank 2cd740095054020 121 g Interest expense fill in the blank 2cd740095054020 123 g Operating fill in the blank 2cd740095054020 125 Net income fill in the blank 2cd740095054020 127 h Investing fill in the blank 2cd740095054020 129 i Financing fill in the blank 2cd740095054020 131 Increase in cash fill in the blank 2cd740095054020 133 2 Prepare an income statement for July Stanley Insurance Inc Income Statement For the Month Ending July 31, 20Y5 Revenues Fees earned $fill in the blank b043d40c607200e 2 Expenses Salary expense $fill in the blank b043d40c607200e 4 Rent expense fill in the blank b043d40c607200e 6 Auto expense fill in the blank b043d40c607200e 8 Interest expense fill in the blank b043d40c607200e 10 Miscellaneous expense fill in the blank b043d40c607200e 12 Total expenses fill in the blank b043d40c607200e 13 Net income $fill in the blank b043d40c607200e 14 Prepare a statement of stockholders equity for July If your answer is zero enter 0 Stanley Insurance Inc Statement of Stockholders Equity For the Month Ending July 31, 20Y5 Common Stock Retained Earnings Total Balances, July 1, 20Y5 $fill in the blank 5f7ed7f9305805a 1 $fill in the blank 5f7ed7f9305805a 2 $fill in the blank 5f7ed7f9305805a 3 fill in the blank 5f7ed7f9305805a 5 fill in the blank 5f7ed7f9305805a 6 fill in the blank 5f7ed7f9305805a 7 fill in the blank 5f7ed7f9305805a 9 fill in the blank 5f7ed7f9305805a 10 fill in the blank 5f7ed7f9305805a 11 fill in the blank 5f7ed7f9305805a 13 fill in the blank 5f7ed7f9305805a 14 fill in the blank 5f7ed7f9305805a 15 Balances, July 31, 20Y5 $fill in the blank 5f7ed7f9305805a 16 $fill in the blank 5f7ed7f9305805a 17 $fill in the blank 5f7ed7f9305805a 18 3 Prepare a balance sheet as of July 31, 20Y5 Stanley Insurance Inc Balance Sheet July 31, 20Y5 Assets $fill in the blank f5738dffdfae051 2 fill in the blank f5738dffdfae051 4 Total assets $fill in the blank f5738dffdfae051 5 Liabilities $fill in the blank f5738dffdfae051 7 Stockholders' Equity $fill in the blank f5738dffdfae051 9 fill in the blank f5738dffdfae051 11 Total stockholders' equity fill in the blank f5738dffdfae051 12 Total liabilities and stockholders' equity $fill in the blank f5738dffdfae051 13 5 Prepare a statement of cash flows for July Use the minus sign to indicate cash out flows, decreases in cash, or cash payments if your answer is zero enter 0 Stanley Insurance Inc Statement of Cash Flows For the Month Ending July 31, 20Y5 Cash flows from operating activities Cash payment for land $fill in the blank e56234faefe4008 2 Cash payments for dividends fill in the blank e56234faefe4008 4 Cash receipts from issuing common stock $fill in the blank e56234faefe4008 6 Cash flows from investing activities Cash receipts from issuing note payable fill in the blank e56234faefe4008 8 Cash flows from financing activities Deduct cash payments for operating activities $fill in the blank e56234faefe4008 10 Cash receipts from issuing note payable fill in the blank e56234faefe4008 12 Cash receipts from operating activities fill in the blank e56234faefe4008 14 Cash receipts from operating activities fill in the blank e56234faefe4008 16 Deduct cash payments for operating activities $fill in the blank e56234faefe4008 18 Deduct cash payments for operating activities fill in the blank e56234faefe4008 20 Net increase in cash during July $fill in the blank e56234faefe4008 22

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on May 31, 2024

Les Stanley established an insurance agency on July 1, 20Y5, and completed the following transactions during July: Opened a business bank account in the name

Les Stanley established an insurance agency on July 1, 20Y5, and completed the following transactions during July:

Opened a business bank account in the name of Stanley Insurance Inc., with a deposit of $50,500 in exchange for common stock.
Borrowed $24,500 by issuing a note payable.
Received cash from fees earned, $27,500.
Paid rent on office and equipment for the month, $2,900.
Paid automobile expense for the month, $1,700, and miscellaneous expense, $600.
Paid office salaries, $4,100.
Paid interest on the note payable, $100.
Purchased land as a future building site, $54,500.
Paid dividends, $4,200.

Instructions:

1. Indicate the effect of each transaction and the balances after each transaction, using the integrated financial statement framework. If an amount box does not require an entry, leave it blank. Enter account decreases and net cash outflows as negative amounts.

Statement of Cash Flows	Balance Sheet
	Assets			=	Liabilities	+	Stockholders' Equity
	Cash	+	Land	=	Notes Payable	+	Common Stock	+	Retained Earnings
a. Issued common stock	fill in the blank 2cd740095054020_7		fill in the blank 2cd740095054020_8		fill in the blank 2cd740095054020_9		fill in the blank 2cd740095054020_10		fill in the blank 2cd740095054020_11
b. Issued note payable	fill in the blank 2cd740095054020_13		fill in the blank 2cd740095054020_14		fill in the blank 2cd740095054020_15		fill in the blank 2cd740095054020_16		fill in the blank 2cd740095054020_17
Balances	fill in the blank 2cd740095054020_18		fill in the blank 2cd740095054020_19		fill in the blank 2cd740095054020_20		fill in the blank 2cd740095054020_21		fill in the blank 2cd740095054020_22
c. Fees earned	fill in the blank 2cd740095054020_24		fill in the blank 2cd740095054020_25		fill in the blank 2cd740095054020_26		fill in the blank 2cd740095054020_27		fill in the blank 2cd740095054020_28
Balances	fill in the blank 2cd740095054020_29		fill in the blank 2cd740095054020_30		fill in the blank 2cd740095054020_31		fill in the blank 2cd740095054020_32		fill in the blank 2cd740095054020_33
d. Rent expense	fill in the blank 2cd740095054020_35		fill in the blank 2cd740095054020_36		fill in the blank 2cd740095054020_37		fill in the blank 2cd740095054020_38		fill in the blank 2cd740095054020_39
Balances	fill in the blank 2cd740095054020_40		fill in the blank 2cd740095054020_41		fill in the blank 2cd740095054020_42		fill in the blank 2cd740095054020_43		fill in the blank 2cd740095054020_44
e. Paid expenses	fill in the blank 2cd740095054020_46		fill in the blank 2cd740095054020_47		fill in the blank 2cd740095054020_48		fill in the blank 2cd740095054020_49		fill in the blank 2cd740095054020_50
Balances	fill in the blank 2cd740095054020_51		fill in the blank 2cd740095054020_52		fill in the blank 2cd740095054020_53		fill in the blank 2cd740095054020_54		fill in the blank 2cd740095054020_55
f. Paid salary expense	fill in the blank 2cd740095054020_57		fill in the blank 2cd740095054020_58		fill in the blank 2cd740095054020_59		fill in the blank 2cd740095054020_60		fill in the blank 2cd740095054020_61
Balances	fill in the blank 2cd740095054020_62		fill in the blank 2cd740095054020_63		fill in the blank 2cd740095054020_64		fill in the blank 2cd740095054020_65		fill in the blank 2cd740095054020_66
g. Paid interest expense	fill in the blank 2cd740095054020_68		fill in the blank 2cd740095054020_69		fill in the blank 2cd740095054020_70		fill in the blank 2cd740095054020_71		fill in the blank 2cd740095054020_72
Balances	fill in the blank 2cd740095054020_73		fill in the blank 2cd740095054020_74		fill in the blank 2cd740095054020_75		fill in the blank 2cd740095054020_76		fill in the blank 2cd740095054020_77
h. Purchased land	fill in the blank 2cd740095054020_79		fill in the blank 2cd740095054020_80		fill in the blank 2cd740095054020_81		fill in the blank 2cd740095054020_82		fill in the blank 2cd740095054020_83
Balances	fill in the blank 2cd740095054020_84		fill in the blank 2cd740095054020_85		fill in the blank 2cd740095054020_86		fill in the blank 2cd740095054020_87		fill in the blank 2cd740095054020_88
i. Paid dividends	fill in the blank 2cd740095054020_90		fill in the blank 2cd740095054020_91		fill in the blank 2cd740095054020_92		fill in the blank 2cd740095054020_93		fill in the blank 2cd740095054020_94
Balances, July 31	fill in the blank 2cd740095054020_95		fill in the blank 2cd740095054020_96		fill in the blank 2cd740095054020_97		fill in the blank 2cd740095054020_98		fill in the blank 2cd740095054020_99
Statement of Cash Flows							*Income Statement*
a. Financing	fill in the blank 2cd740095054020_101						c. Fees earned		fill in the blank 2cd740095054020_103
b. Financing	fill in the blank 2cd740095054020_105						d. Rent expense		fill in the blank 2cd740095054020_107
c. Operating	fill in the blank 2cd740095054020_109						e. Auto expense		fill in the blank 2cd740095054020_111
d. Operating	fill in the blank 2cd740095054020_113						e. Miscellaneous expense		fill in the blank 2cd740095054020_115
e. Operating	fill in the blank 2cd740095054020_117						f. Salary expense		fill in the blank 2cd740095054020_119
f. Operating	fill in the blank 2cd740095054020_121						g. Interest expense		fill in the blank 2cd740095054020_123
g. Operating	fill in the blank 2cd740095054020_125						Net income		fill in the blank 2cd740095054020_127
h. Investing	fill in the blank 2cd740095054020_129
i. Financing	fill in the blank 2cd740095054020_131
Increase in cash	fill in the blank 2cd740095054020_133

2. Prepare an income statement for July.

Stanley Insurance Inc.
Income Statement
For the Month Ending July 31, 20Y5
Revenues:
Fees earned		$fill in the blank b043d40c607200e_2
Expenses:
Salary expense	$fill in the blank b043d40c607200e_4
Rent expense	fill in the blank b043d40c607200e_6
Auto expense	fill in the blank b043d40c607200e_8
Interest expense	fill in the blank b043d40c607200e_10
Miscellaneous expense	fill in the blank b043d40c607200e_12
Total expenses		fill in the blank b043d40c607200e_13
Net income		$fill in the blank b043d40c607200e_14

Prepare a statement of stockholders equity for July. If your answer is zero enter "0".

Stanley Insurance Inc.
Statement of Stockholders Equity
For the Month Ending July 31, 20Y5
	Common Stock	Retained Earnings	Total
Balances, July 1, 20Y5	$fill in the blank 5f7ed7f9305805a_1	$fill in the blank 5f7ed7f9305805a_2	$fill in the blank 5f7ed7f9305805a_3
	fill in the blank 5f7ed7f9305805a_5	fill in the blank 5f7ed7f9305805a_6	fill in the blank 5f7ed7f9305805a_7
	fill in the blank 5f7ed7f9305805a_9	fill in the blank 5f7ed7f9305805a_10	fill in the blank 5f7ed7f9305805a_11
	fill in the blank 5f7ed7f9305805a_13	fill in the blank 5f7ed7f9305805a_14	fill in the blank 5f7ed7f9305805a_15
Balances, July 31, 20Y5	$fill in the blank 5f7ed7f9305805a_16	$fill in the blank 5f7ed7f9305805a_17	$fill in the blank 5f7ed7f9305805a_18

3. Prepare a balance sheet as of July 31, 20Y5.

Stanley Insurance Inc.
Balance Sheet
July 31, 20Y5
Assets
		$fill in the blank f5738dffdfae051_2
		fill in the blank f5738dffdfae051_4
Total assets		$fill in the blank f5738dffdfae051_5
Liabilities
		$fill in the blank f5738dffdfae051_7
Stockholders' Equity
	$fill in the blank f5738dffdfae051_9
	fill in the blank f5738dffdfae051_11
Total stockholders' equity		fill in the blank f5738dffdfae051_12
Total liabilities and stockholders' equity		$fill in the blank f5738dffdfae051_13

5. Prepare a statement of cash flows for July. Use the minus sign to indicate cash out flows, decreases in cash, or cash payments. if your answer is zero enter "0".

Stanley Insurance Inc.
Statement of Cash Flows
For the Month Ending July 31, 20Y5
Cash flows from operating activities:
Cash payment for land	$fill in the blank e56234faefe4008_2
Cash payments for dividends	fill in the blank e56234faefe4008_4
Cash receipts from issuing common stock		$fill in the blank e56234faefe4008_6
Cash flows from investing activities:
Cash receipts from issuing note payable		fill in the blank e56234faefe4008_8
Cash flows from financing activities:
Deduct cash payments for operating activities	$fill in the blank e56234faefe4008_10
Cash receipts from issuing note payable	fill in the blank e56234faefe4008_12
Cash receipts from operating activities	fill in the blank e56234faefe4008_14
Cash receipts from operating activities		fill in the blank e56234faefe4008_16
Deduct cash payments for operating activities		$fill in the blank e56234faefe4008_18
Deduct cash payments for operating activities		fill in the blank e56234faefe4008_20
Net increase in cash during July		$fill in the blank e56234faefe4008_22