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 $51,000 in exchange for common stock. b. Borrowed $23,000 by issuing a note payable. c. Received cash from fees earned, $27,000. d. Paid rent on office and equipment for the month, $2,500. e. Paid automobile expense for the month, $2,000, and miscellaneous expense, $900. f. Paid office salaries, $4,200. g. Paid interest on the note payable, $100. h. Purchased land as a future building site, paying cash of $56,500. 1. Paid dividends, $4,000. Instructions: 1. Indicate the effect of each transaction and the balances after each transaction, using the integrated financial statement framework. After all transactions are re enter Net income under the Income Statement column. If an amount box does not require an entry, leave it blank. Enter account decreases and net cas outflows as negative amounts using the minus sign. b. Transaction Balances C. Balances d. Assets Balance Sheet Liabilities Stockholders' Equity d. Balances Balances e. Balances f. Balances 9. h. Balances Balances a. b. c. d. Balances, July 31 Statement of Cash Flows C. d. e. e. Income Statement e. f. g h 9- 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. Smith Insurance Inc. Income Statement For the Month Ending July 31, 20YS Revenues: Expenses: Total expenses Net income 100 Prepare a statement of stockholders' equity for July. If your answer is zero enter "0". Smith Insurance Inc. Statement of Stockholders' Equity For the Month Ending July 31, 2015 Common Stock Balances, July 1, 20Y5 Balances, July 31, 2015 Retained Earnings Total 1000 10000 4. Prepare a balance sheet as of July 31, 2015. Smith Insurance Inc. Balance Sheet July 31, 20Y5 Assets Total assets Liabilities Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity 5. Prepare a statement of cash flows for July. Use the minus sign to indicate cash outflows, decreases in cash, or cash payments. enter "0". Smith Insurance Inc. Statement of Cash Flows For the Month Ending July 31, 2015 Cash flows from (used for) operating activities: Cash flows from (used for) investing activities: Cash flows from (used for) financing activities: Q O Check My Work 3 more Check My Work uses remaining. C