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ransactions and Financial Statements Roger Smith established an insurance agency on July 1, 20Y5, and completed the following transactions during July: a. Opened a business

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ransactions and Financial Statements Roger Smith established an insurance agency on July 1, 20Y5, and completed the following transactions during July: a. Opened a business bank account in the name of Smith Insurance Inc, with a deposit of $49,000 in exchange for common stock. b. Borrowed $24,000 by issuing a note payable. Recelved cash from fees earned, $28,000 d. Pald cent on office and equipment for the month, $3,100. e. Paid atitomobile expense for the month, $1,800, and miscellaneous expense, $600. f. Pald office salaries, 54,400 . 9. Paid interest on the note payable, 590 . h. Purchased land as a tuture building site, paving cash of 553,000 . 1. Paid dividends, 33,600 . Instructions: 1. Indicate the effect of each transaction and the balances after each trangaction, using the integrated financial statement framework. After all transactions are tecorded, enter Nes income under the tncome: Statement column. If an amount box does not requine an entry, leave it blank. Enter account decreases and net cash outflowis as-negative amounts uting the minus sign. Financial Statement Effects 5. Prepare a statehient 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 " 0 ". 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 " 0 ". Paid interest expense \begin{tabular}{lcc} & Statement of Cash Flows & \\ \hline a. Financing & 49,000 \\ \hline b. Financing & 2,4,000 \\ \hline c. Operating & 2,8,000 \\ \hline d. Operating & 3,100 \\ \hline e. Operating & 2,400 \\ \hline f. Operating & 4,400 \\ \hline 0. Operating & -90 \\ \hline hi. Investiog & 5,000 \\ \hline i. Iinancing & 3,600 \\ \hline \end{tabular} \begin{tabular}{lr} \multicolumn{3}{c}{ Income Statement } \\ \hline c. Fees earned & 28,000 \\ \hline d. Rent expense & 3,100 \\ \hline e. Auto expense & 1,800 \\ \hline e. Miscellaneous expense & -600 \\ \hline f. Salary expense & 4,400 \\ \hline 9. fonterest expense & -90 \\ \hline & Nut incomp \\ \hline \end{tabular} Prepare a statement of stockholders' equity for July. If your answer is zero enter " 0 ". 4. Prepare a balance sheet as of July 31,205. 2. Which of the following shows the correct effect on the accounting equation for a utility expense that is paid when billed? 3. Prepare an income statement for july. Prepare a statement of stockholders' equity for julv. If your answer is zero enter " 0

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