Statement of Cash Flows
Financial Statements Jose Loder established Bronco Consulting on August 1, 20Y1. The effect of each transaction and the balances after each transaction for August follow: Assets = Liabilities + Stockholders' Equity Cash + Accounts Receivable + Supplies = Accounts Payable + Common Stock - Dividends + Fees Earned Salaries Expense Rent Expense Auto Expense Supplies Expense Misc. Expense a. +24,910 +24,910 . b. +2,170 +2,170 Bal. 24,910 2,170 2,170 24,910 C. +24,410 +24,410 Bal. 49,320 2,170 2,170 24,910 24,410 d. -6,700 -6,700 Bal. 42,620 2,170 2,170 24,910 24,410 -6,700 e. -1,050 -1,050 Bal. 41,570 2,170 1,120 24,910 24,410 -6,700 f. +17,200 +17,200 Bal. 41,570 17,200 2,170 1,120 24,910 41,610 -6,700 g. -4,730 -3,240 -1,490 Bal. 36,840 17,200 2,170 1,120 24,910 41,610 -6,700 -3,240 -1,490 h. - 10,000 -10,000 Bal. 26,840 17,200 2,170 1,120 24,910 41,610 -10,000 -6,700 -3,240 -1,490 i. -1,200 -1,200 Bal. 26,840 17,200 970 1,120 24,910 41,610 -10,000 -6,700 -3,240 -1,200 -1,490 j. -6,200 -6,200 Bal. 20,640 17,200 970 1,120 24,910 -6,200 41,610 - 10,000 -6,700 -3,240 -1,200 -1,490 Required: 1. Prepare an income statement for the month ended August 31, 20Y1. Bronco Consulting Income Statement For the Month Ended August 31, 20Y1 Fees earned 41,610 Expenses: Salaries expense - 10,000 -6,700 Rent expense Auto expense Supplies expense -3,240 - 1,200 Miscellaneous expense -1,490 22,630 Total expenses Net income 18,980 Feedback Check My Work 1. An income statement reports the revenues and expenses. When revenues are larger than the expenses, the 2. Prepare a statement of stockholders' equity for the month ended August 31, 20Y1. If an answer is z Bronco Consulting Statement of Stockholders' Equity For the Month Ended August 31, 20Y1 Common Stock Retained Earnings Total Balances, August 1, 20Y1 o $ o Issued common stock 24,910 o 24,910 Net income 0 18,980 18,980 Dividends o -6,200 -6,200 0 Balances, August 31, 20Y1 24,910 12,780 37,690 3. Prepare a balance sheet as of August 31, 20Y1. When entering assets, enter them in order of liquidity. Bronco Consulting Balance Sheet August 31, 2011 Assets 20,640 Cash Accounts receivable 17,200 Supplies 970 Total assets 38,810 Liabilities Accounts payable 1,120 Common stock Stockholders' Equity 24,910 12,780 Retained earnings Total stockholders' equity 37,690 Total liabilities and stockholders' Equity 38,810 4. Prepare a statement of cash flows for the month ending August 31, 20Y1. For those boxes in which no entry is required, enter "0". Use the minus sign to indicate cash outflows, cash payments, and decreases in cash. Bronco Consulting Statement of Cash Flows For the Month Ended August 31, 2011 Cash flows from (used for) operating activities: Cash received from customers 24,410 Cash paid for expenses and to creditors Net cash flows from operating activities Cash flows from (used for) investing activities: Cash flows from (used for) financing activities: Cash received from issuing common stock cant figure these numbers out. Cash paid for dividends please provide explanation on answers Net cash flows from financing activities Net increase in cash Cash balance, August 1, 2011 18,980 Cash balance, August 31, 20Y1 20,640
