Required information [The following information applies to the questions displayed below.] Sanyu Sony started a new business and completed these transactions during December. December 1 Sanyu Sony transferred $67,700 cash from a personal savings account to a checking account in the name of Sony Electric in exchange for its common stock. December 2 The company paid $1,300 cash for the December rent. December 3 The company purchased $13,900 of electrical equipment by paying $5,700 cash and agreeing to pay the $8,200 balance in 30 days. December 5 The company purchased supplies by paying $1,000 cash. December 6 The company completed electrical work and immediately collected $1,800 cash for these services. December 8 The company purchased $2,680 of office equipment on credit. December 15 The company completed electrical work on credit in the amount of $6,500. December 18 The company purchased $420 of supplies on credit. December 20 The company paid $2,680 cash for the office equipment purchased on December 8. December 24 The company billed a client $1,000 for electrical work completed; the balance is due in 30 days. December 28 The company received $6,500 cash for the work completed on December 15. December 29 The company paid the assistant's salary of $1,400 cash for this month. December 30 The company paid $540 cash for this month's utility bill. December 31 The company paid $910 cash in dividends to the owner (sole shareholder). 2-a. Prepare the income statement for the current month. 2-b. Prepare the statement of retained earnings for the current month. 2-c. Prepare the balance sheet as of the end of the month. 3. Prepare the statement of cash flows for the current month. Required 2A Required 2B Required 2C Required 3 Prepare the income statement for the current month. SONY ELECTRIC Income Statement For Month Ended December 31 Revenues Electrical services revenue Consulting services revenue Total Revenues Expenses Rent expense 1,300 Utilities expense 540 Salaries expense 1,400 Total expenses Net income $ 9,300 1,800 X 11,100 3,240 $ 7,860 Required 2A Required 2B > Required 2A Required 2B Required 2C Required 3 Prepare the 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 4,640 x 4,640 Less: Dividends (910) Retained earnings, December 31 $ 3,730 Required 2A Required 2B Required 2C Required 3 Prepare the balance sheet as of the end of the month. SONY ELECTRIC Balance Sheet December 31 Assets Liabilities Cash Accounts receivable Supplies $ 62,470 Accounts payable $ 8,620 1,000 1,420 Total liabilities 8,620 Office equipment 2,680 Equity Electrical equipment 13,900 Common stock 71,430 Total equity 71,430 Total assets $ 81,470 Total liabilities and equity $ 80,050 SONY ELECTRIC Statement of Cash Flows For Month Ended December 31 Cash flows from operating activities Cash received from customers Cash paid for utilities Cash paid for rent Cash paid to employees Cash paid for supplies $ 8,300 (540) (1,300) (1,400) (1,000) Net cash provided by operating activities Cash flows from investing activities Cash paid for office equipment Cash paid for electrical equipment (2,680) (5,700) Net cash used by investing activities Cash flows from financing activities Cash investment from shareholder Cash dividend to shareholder 67,700 (910) EA $ 4,060 (8,380) ---- Cash paid for utilities (540) Cash paid for rent (1,300) Cash paid to employees (1,400) Cash paid for supplies (1,000) Net cash provided by operating activities Cash flows from investing activities Cash paid for office equipment (2,680) Cash paid for electrical equipment (5,700) Net cash used by investing activities Cash flows from financing activities Cash investment from shareholder Cash dividend to shareholder 67,700 (910) $ 4,060 (8,380) Net cash provided by financing activities 66,790 Net increase in cash $ 62,470 Cash balance, December 1 0 Cash balance, December 31 $ 62,470