Required information Problem 1-9A Analyzing transactions and preparing financial statements LO C4, P1, P2 [The following information applies to the questions displayed below.] Sanyu Sony started a new business and completed these transactions during December. Dec. 1 Sanyu Sony transferred $68,400 cash from a personal savings account to a checking account in the name of Sony Electric in exchange for its common stock. 2 The company rented office space and paid $2,000 cash for the December rent. 3 The company purchased $14,700 of electrical equipment by paying $6,500 cash and agreeing to pay the $8,200 balance in 30 days. 5 The company purchased office supplies by paying $900 cash. 6 The company completed electrical work and immediately collected $1,300 cash for these services. 8 The company purchased $2,560 of office equipment on credit. 15 The company completed electrical work on credit in the amount of $4,400. 18 The company purchased $340 of office supplies on credit. 20 The company paid $2,560 cash for the office equipment purchased on December 8. 24 The company billed a client $800 for electrical work completed; the balance is due in 30 days. 28 The company received $4,400 cash for the work completed on December 15. 29 The company paid the assistant's salary $1,400 cash for this month. 30 The company paid $510 cash for this month's utility bill. 31 The company paid $910 cash in dividends to the owner (sole shareholder). Problem 1-9A Part 2 and 3 2-a. Prepare an income statement for the current month. 2-b. Prepare a statement of retained earnings for the current month. 2-c. Prepare a balance sheet as of the end of the month. 3. Prepare a statement of cash flows for the current month. SONY ELECTRIC Income Statement For Month Ended December 31 Revenues Consulting services revenue $ 8,200 X Total Revenues 8,200 Expenses Rent expense 2,000 Salaries expense 1,400 Utilities expense 510 Total expenses 3,910 4,290 Net income $ Prepare a statement of retained earnings for the current month. SONY ELECTRIC Statement of Retained Earnings For Month Ended December 31 Retained earnings, December 1 $ Add: Net income 0 4,290 X 2,590 Less: Dividends 910 Retained earnings, December 31 $ 1,680 SONY ELECTRIC Balance Sheet December 31 Assets Liabilities Cash $ 68,400 X Accounts payable $ 8,540 Accounts receivable 800 900 Equity Office supplies Office equipment Electrical equipment Common stock 2,560 14,700 Retained earnings Total equity Total liabilities and equity 68,400 1,680 70,080 $ 78,620 Total assets $ 87,360 SONY ELECTRIC Statement of Cash Flows For Month Ended December 31 $ 5,700 Cash flows from operating activities Cash received from customers Cash paid for supplies Cash paid for rent Cash paid to employees Cash paid for utilities (900) (2,000) (1,400) (510) 890 Net cash provided by operating activities Cash flows from investing activities Cash paid for office equipment Cash paid for electrical equipment (2,560) (6,500) (9,060) Net cash provided by investing activities Cash flows from financing activities Cash investment from shareholder Cash dividend to shareholder 68,400 (910) 07 Ann