Question
Missing Amounts from Financial Statements The financial statements at the end of Paradise Realty's first month of operations are shown below. PARADISE REALTY Income Statement
Missing Amounts from Financial Statements
The financial statements at the end of Paradise Realty's first month of operations are shown below.
PARADISE REALTY
Income Statement
For the Month Ended November 30, 20Y3
Fees earned
$352,900
Operating expenses:
Wages expense
$ (a)
Rent expense
63,522
Supplies expense
53,994
Utilities expense
44,465
Miscellaneous expense
15,881
Total operating expenses
(255,500)
Net income
$ (b)
PARADISE REALTY
Statement of Stockholders' Equity
For the Month Ended November 30, 20Y3
Common Stock
Retained Earnings
Total
Balances, Nov. 1, 20Y3
$0
$0
$0
Issuance of common stock
274,000
274,000
Net income
(c)
(c)
Dividends
(d)
(d)
Balances, Nov. 30, 20Y3
$274,000
$(e)
$346,740
November 30, 20Y3
Assets
Cash
$ 188,775
Supplies
72,892
Land
(f)
Total assets
$ (g)
Liabilities
Note payable
$ 124,927
Stockholders' Equity
Common stock
$ (h)
Retained earnings
(i)
Total stockholders' equity
(j)
Total liabilities and stockholders' equity
(k)
PARADISE REALTY
Statement of Cash Flows
For the Month Ended November 30, 20Y3
Cash flows from operating activities:
Cash received from customers
$ (l)
Deduct cash payments for expenses and payments to creditors
(203,465)
Net cash flows from operating activities
$ (m)
Cash flows used for investing activities:
Cash payments for acquisition of land
(210,000)
Cash flows from financing activities:
Cash received from issuing common stock
$ 274,000
Deduct dividends
(24,660)
Net cash flows from financing activities
(n)
Net increase in cash during month
(o)
Cash as of November 1
0
Cash as of November 30
(o)
Instructions:
Instructions:
1.Would you classify a realty business such as Paradise Realty as a manufacturing, merchandising, or service business?
manufacturing business
2. By analyzing the interrelationships among the financial statements, determine the proper amounts for (a) through (o). Enter all amounts as positive numbers.
a.Wages expense
$
b.Net income
$
c.Net income for November
$
d.Dividends
$
e.Retained earnings, November 30, 20Y3
$
f.Land
$
g.Total assets
$
h.Common stock
$
i.Retained earnings
$
j.Total stockholders' equity
$
k.Total liabilities and stockholders' equity
$
l.Cash received from customers
$
m.Net cash flows from operating activities
$
n.Net cash flows from financing activities
$
o.Net cash flow and November 30, 20Y3 cash balance
$
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