Seth Feye established Reliance Financial Services on July 1, 20Y2, as a proprietorship. Reliance Financial Services offers financial planning advice to its clients. The effect of each transaction and the balances after each transaction for July follow:

Assets	= Liabilities	+ Owner's Equity
		Accounts		Accounts	Seth Feye,	Seth Feye,	Fees	Salaries	Rent	Auto	Supplies	Misc.
	Cash	+ Receivable	+ Supplies	= Payable	+ Capital	- Drawing	+ Earned	- Expense	- Expense	- Expense	- Expense	- Expense
a.	+58,000				+58,000
b.			+6,000	+6,000
Bal.	58,000		6,000	6,000	58,000
c.	-3,600			-3,600
Bal.	54,400		6,000	2,400	58,000
d.	+104,000						+104,000
Bal.	158,400		6,000	2,400	58,000		104,000
e.	-34,800								-34,800
Bal.	123,600		6,000	2,400	58,000		104,000		-34,800
f.	-21,900									-15,400		-6,500
Bal.	101,700		6,000	2,400	58,000		104,000		-34,800	-15,400		-6,500
g.	-56,000							-56,000
Bal.	45,700		6,000	2,400	58,000		104,000	-56,000	-34,800	-15,400		-6,500
h.			-3,000								-3,000
Bal.	45,700		3,000	2,400	58,000		104,000	-56,000	-34,800	-15,400	-3,000	-6,500
i.		+50,400					+50,400
Bal.	45,700	50,400	3,000	2,400	58,000		154,400	-56,000	-34,800	-15,400	-3,000	-6,500
j.	-14,000					-14,000
Bal.	31,700	50,400	3,000	2,400	58,000	-14,000	154,400	-56,000	-34,800	-15,400	-3,000	-6,500

	Required:
1.	Prepare an income statement for the month ended July 31, 20Y2.
2.	Prepare a statement of owner's equity for the month ended July 31, 20Y2.
3.	Prepare a balance sheet as of July 31, 20Y2.
4.	Prepare a statement of cash flows for the month ending July 31, 20Y2.

Accounts receivable
Accounts payable
Auto expense
Cash
Fees earned
Miscellaneous expense
Rent expense
Seth Feye, capital
Salaries expense
Supplies
Supplies expense
Labels
Cash flows from (used for) operating activities
Cash flows from (used for) investing activities
Cash flows from (used for) financing activities
Expenses
For the Month Ended July 31, 20Y2
July 31, 20Y2
Amount Descriptions
Cash paid for owner withdrawals
Cash paid for expenses and to creditors
Cash received from customers
Cash received from owner's investment
Cash balance, July 1, 20Y2
Cash balance, July 31, 20Y2
Investment by owner
Net cash flows from financing activities
Net cash flows from investing activities
Net cash flows from operating activities
Net cash flows used for financing activities
Net cash flows used for investing activities
Net cash flows used for operating activities
Net income
Net loss
Net increase in cash
Net decrease in cash
Seth Feye, capital, July 1, 20Y2
Seth Feye, capital, July 31, 20Y2
Total assets
Total expenses
Total liabilities and owner's equity
Withdrawals

1. Prepare an income statement for the month ended July 31, 20Y2.

Income Statement Instructions

Score: 61/75

Reliance Financial Services

Income Statement

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Points:

14.64 / 18

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An income statement reports the revenues and expenses. When revenues are larger than the expenses, the difference is net income.

2. Prepare a statement of owner's equity for the month ended July 31, 20Y2.

Statement of Stockholders Equity Instructions

Score: 12/51

Reliance Financial Services

Statement of Owner's Equity

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Points:

2.59 / 11

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Begin with the capital balance at the beginning of the accounting period. Take into consideration additional investments by the owner, net income or net loss for the year, and any withdrawals. Total all amounts to determine the capital balance at the end of the accounting period.

3. Prepare a balance sheet as of July 31, 20Y2.

Balance Sheet Instructions

Question not attempted.

Score: 0/62

Reliance Financial Services

Balance Sheet

1	Assets
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6	Liabilities
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8	Owner's Equity
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Points:

0 / 15

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Recall that the balance sheet is a formal presentation of the accounting equation, such that total assets must equal total liabilities and owner's equity. Assets are items owned by the company, while liabilities are debts owed to creditors, and owner's equity represents the rights of the owner to the assets of the business.

4. Prepare a statement of cash flows for the month ending July 31, 20Y2.

Statement of Cash Flows Instructions

Question not attempted.

Score: 0/86

Reliance Financial Services

Statement of Cash Flows

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Points:

0 / 23

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Identify the sources of cash and determine the company's use of cash. Recall that there are three activity types of cash flows: operating, investing, and financing.