Transactions and Financial Statements Les Stanley established an insurance agency on July 1, 2045, and completed the following transactions during July: a. Opened a business bank account in the name of Stanley Insurance Inc., with a deposit of $48,000 in exchange for common stock. b. Borrowed $26,000 by issuing a note payable. c. Received cash from fees earned, $28,500. d. Paid rent on office and equipment for the month, $2,700. e. Paid automobile expense for the month, $2,000, and miscellaneous expense, $600. f. Paid office salaries, $4,000, 9. Paid interest on the note payable, $100. h. Purchased land as a future building site, $54,000. 1. Paid dividends, $3,600. Issued common stock 48.000 48,000 Issued note payable 25,500 X Balances 73,500 x Pescared 25,500 Places 4. Rent expense e. Pald expenses Paldiary expense Balances Paid interest expense Balance h. Purchased and Balances Paid dividende Income Statement Statement of Cash Flowe Crees samed d. Rent expense Operating .. Aute expense Miscellaneous expense Salary expense Interest expense Net income 3. Prepare an income statement for July. Stanley Insurance Inc. Income Statement For the Month Ending July 31, 2015 Revenues: Fees earned $ > Expenses: Salary expense $ Rent expense Auto expense Interest expense Miscellaneous expense Total expenses Net income Feedback Prepare a statement of stockholders' equity for July. If your answer is zero enter "0". Stanley Insurance Inc. Statement of Stockholders' Equity For the Month Ending July 31, 2015 Common Stock Retained Earnings Total Balances, July 1, 2045 Issued common stock Net income Dividends Balances, July 31, 2015 4. Prepare a balance sheet as of July 31, 2045. Stanley Insurance Inc. Balance Sheet July 31, 2015 Assets Cash Land Total assets Liabilities Notes payable Stockholders' Equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 5. Prepare a statement of cash flows for July. Use the minus sign to indicate cash out flows, decreases in cash, or cash payments. If your answer is zero enter "O". Stanley Insurance Inc. Statement of Cash Flows For the Month Ending July 31, 2015 Cash flows from operating activities: Cash receipts from operating activities Deduct cash payments for operating activities Net cash flows from operating activities Cash flows from investing activities: Cash payment for land Cash flows from financing activities: Cash receipts from issuing common stock Cash receipts from Issuing note payable Cash payments for dividends Net cash flows from financing activities Net increase in cash during July Cash as of July 1, 2015 Cash as of July 31, 2015
