Transactions and Financial Statements Les Stanley established an insurance agency on July 1, 20Y5, and completed the following transactions during July Opened a business bank account in the name of Stanley Insurance Inc , with a deposit of $60,000 in exchange for common stock Borrowed $100,000 by issuing a note payable Received cash from fees earned, $30,000 Paid rent on office and equipment for the month, $5,000 Paid automobile expense for the month, $2,500, and miscellaneous expense, $1,000 Paid office salaries, $6,500 Paid interest on the note payable, $500 Purchased land as a future building site, paying cash of $120,000 Paid dividends, $3,000 Instructions 1 Indicate the effect of each transaction and the balances after each transaction, using the integrated financial statement framework If an amount box does not require an entry, leave it blank Enter account decreases and net cash outflows as negative amounts Statement of Cash Flows Balance Sheet Assets Liabilities Stockholders' Equity Choose One a Common Stock b Cash Choose One a Land b Notes Payable Choose One a Notes Payable b Retained Earnings Choose One a Common Stock b Cash Choose One a Notes Payable b Retained Earnings a Choose One Fees earned Issued common stock Issued note payable Paid dividends Paid interest expense Paid salary expense Purchased land Rent expense fill in the blank fill in the blank fill in the blank fill in the blank fill in the blank b Choose One Fees earned Investment Issued note payable Paid dividends Paid interest expense Paid salary expense Purchased land Rent expense fill in the blank fill in the blank fill in the blank fill in the blank fill in the blank Balances fill in the blank fill in the blank fill in the blank fill in the blank fill in the blank c Choose One Fees earned Investment Issued note payable Paid dividends Paid interest expense Paid salary expense Purchased land Rent expense fill in the blank fill in the blank fill in the blank fill in the blank fill in the blank Balances fill in the blank fill in the blank fill in the blank 1 fill in the blank fill in the blank d Choose One Fees earned Investment Issued note payable Paid dividends Paid interest expense Paid salary expense Purchased land Rent expense fill in the blank fill in the blank fill in the blank fill in the blank fill in the blank Balances fill in the blank fill in the blank fill in the blank fill in the blank fill in the blank e Choose One Fees earned Investment Issued note payable Paid dividends Paid expenses Paid salary expense Purchased land Rent expense fill in the blank fill in the blank fill in the blank fill in the blank fill in the blank Balances fill in the blank fill in the blank fill in the blank fill in the blank fill in the blank f Choose One Fees earned Investment Issued note payable Paid dividends Paid interest expense Paid salary expense Purchased land Rent expense fill in the blank fill in the blank fill in the blank fill in the blank fill in the blank Balances fill in the blank fill in the blank fill in the blank fill in the blank fill in the blank g Choose One Fees earned Investment Issued note payable Paid dividends Paid interest expense Paid salary expense Purchased land Rent expense fill in the blank fill in the blank fill in the blank fill in the blank fill in the blank Balances fill in the blank fill in the blank fill in the blank fill in the blank fill in the blank h Choose One Fees earned Investment Issued note payable Paid dividends Paid interest expense Paid salary expense Purchased land Rent expense fill in the blank fill in the blank fill in the blank fill in the blank fill in the blank Balances fill in the blank fill in the blank fill in the blank fill in the blank fill in the blank i Choose One Fees earned Investment Issued note payable Paid dividends Paid interest expense Paid salary expense Purchased land Rent expense fill in the blank fill in the blank fill in the blank fill in the blank fill in the blank Balances, March 31 fill in the blank fill in the blank fill in the blank fill in the blank fill in the blank Statement of Cash Flows Income Statement a Choose One Financing Operating Investing No effect fill in the blank c Choose One Fees earned Rent expense Auto expense Miscellaneous expense Salary expense Interest expense fill in the blank b Choose One Financing Operating Investing No effect fill in the blank d Choose One Fees earned Rent expense Auto expense Miscellaneous expense Salary expense Interest expense fill in the blank c Choose One Financing Operating Investing No effect fill in the blank e Choose One Fees earned Rent expense Auto expense Cash Salary expense Interest expense fill in the blank d Choose One Financing Operating Investing No effect fill in the blank e Choose One Fees earned Rent expense Cash Miscellaneous expense Salary expense Interest expense fill in the blank e Choose One Financing Operating Investing No effect fill in the blank f Choose One Fees earned Rent expense Auto expense Miscellaneous expense Salary expense Interest expense fill in the blank f Choose One Financing Operating Investing No effect fill in the blank g Choose One Fees earned Rent expense Auto expense Miscellaneous expense Salary expense Interest expense fill in the blank g Choose One Financing Operating Investing No effect fill in the blank Choose One Net income Net loss fill in the blank h Choose One Financing Operating Investing No effect fill in the blank i Choose One Financing Operating Investing No effect fill in the blank Choose One Increase in cash Decrease in cash No effect fill in the blank 2 Which of the following shows the correct effect on the accounting equation for a utility expense that is paid when billed a Increase assets increase stockholders' equity b Decrease assets decrease stockholders' equity c Decrease assets decrease liabilities d Increase liabilities decrease stockholders' equity 3 Prepare an income statement for July Revenues Choose one a Cash b Auto expense c Fees earned d Interest expense e Retained earnings $ Expenses Choose one a Cash b Fees earned c Land d Note payable e Salary expense $ Choose one a Cash b Fees earned c Land d Note payable e Rent expense $ Choose one a Auto expense b Common stock c Cash d Fees earned e Note payable $ Choose one a Common stock b Fees earned c Land d Note payable e Interest expense $ Choose one a Cash b Fees earned c Miscellaneous expense d Note payable e Retained earnings $ Total expenses $ Choose one a Net income b Net loss $ Prepare a statement of stockholders' equity for July If your answer is zero enter 0 Common Stock Retained Earnings Total Balances, July 1, 20Y5 $ $ $ Choose One a Cash b Issued common stock c Issued note payable d Land e Salary expense $ $ $ Choose One a Net income b Net loss $ $ $ Choose One a Dividends b Plus dividends $ $ $ Balances, July 31, 20Y5 $ $ $ 4 Prepare a balance sheet as of July 31, 20Y5 Assets Choose One a Common stock b Cash c Notes payable d Rent expense e Retained earnings $ a Auto expense b Common stock c Land d Notes payable e Retained earnings Total assets $ Liabilities Choose One a Common stock b Cash c Land d Notes payable e Retained earnings $ Stockholders' Equity Choose One a Common stock b Fees Earned c Interest expense d Land e Notes payable $ Choose One a Land b Miscellaneous expense c Notes payable d Retained earnings e Salary expense 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 0 Cash flows from operating activities Cash payment for land Cash payments for dividends Cash receipts from issuing common stock Cash receipts from issuing note payable Cash receipts from operating activities Net cash flows from financing activities Net cash flows from operating activities Net increase in cash during July $ Cash payment for land Cash payments for dividends Cash receipts from issuing common stock Cash receipts from issuing note payable Deduct cash payments for operating activities Net cash flows from financing activities Net cash flows from operating activitiesNet increase in cash during July Cash payment for land Cash payments for dividends Cash receipts from issuing common stock Cash receipts from issuing note payable Cash receipts from operating activities Deduct cash payments for operating activities Net cash flows from financing activities Net cash flows from operating activities $ Cash flows from investing activities Cash payment for land Cash payments for dividends Cash receipts from issuing common stock Cash receipts from issuing note payable Cash receipts from operating activities Deduct cash payments for operating activities Net cash flows from financing activities Net cash flows from operating activities Cash flows from financing activities Cash payment for land Cash receipts from issuing common stock Cash receipts from operating activities Deduct cash payments for operating activities Net cash flows from financing activities Net cash flows from operating activities Net increase in cash during July $ Cash payment for land Cash receipts from issuing note payable Cash receipts from operating activities Deduct cash payments for operating activities Net cash flows from financing activities Net cash flows from operating activities Net increase in cash during July Cash as of July 1, 20Y5 Cash as of July 31, 20Y5 Cash payment for land Cash payments for dividends Cash receipts from operating activities Deduct cash payments for operating activities Net cash flows from financing activities Net cash flows from operating activities Cash payment for land Cash payments for dividends Cash receipts from issuing common stock Cash receipts from issuing note payable Cash receipts from operating activities Deduct cash payments for operating activities Net cash flows from financing activities Net cash flows from operating activities Cash as of July 1, 20Y5 Cash as of July 31, 20Y5 Cash payment for land Cash payments for dividends Cash receipts from issuing common stock Cash receipts from issuing note payable Deduct cash payments for operating activities Net increase in cash during July $ Cash as of July 1, 20Y5 Cash as of July 31, 20Y5 Cash payment for land Cash payments for dividends Cash receipts from issuing note payable Cash receipts from operating activities Deduct cash payments for operating activities Net increase in cash during July Cash as of July 1, 20Y5 Cash as of July 31, 20Y5 Cash payment for land Cash receipts from issuing common stock Cash receipts from issuing note payable Cash receipts from operating activities Deduct cash payments for operating activities Net increase in cash during July $ I will include images of what these questions look like on the Cengage page Safari File Edit View History Bookmarks Window Help Q 8 0 Fri Jan 28 8 20 Check My Work Progress 6 8 items Email Instructor Save and Exit Submit Assignment for Gradin Assignment Score 0 0 JAN 10 Ai W 28

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 21, 2024

Transactions and Financial Statements Les Stanley established an insurance agency on July 1, 20Y5, and completed the following transactions during July: Opened a business bank

Transactions and Financial Statements

Les Stanley established an insurance agency on July 1, 20Y5, and completed the following transactions during July:

Opened a business bank account in the name of Stanley Insurance Inc., with a deposit of $60,000 in exchange for common stock.
Borrowed $100,000 by issuing a note payable.
Received cash from fees earned, $30,000.
Paid rent on office and equipment for the month, $5,000.
Paid automobile expense for the month, $2,500, and miscellaneous expense, $1,000.
Paid office salaries, $6,500.
Paid interest on the note payable, $500.
Purchased land as a future building site, paying cash of $120,000.
Paid dividends, $3,000.

Instructions:

1. Indicate the effect of each transaction and the balances after each transaction, using the integrated financial statement framework. If an amount box does not require an entry, leave it blank. Enter account decreases and net cash outflows as negative amounts.

Statement of Cash Flows	Balance Sheet
Assets	=	Liabilities	+	Stockholders' Equity
Choose One: a. Common Stock b. Cash	+	Choose One: a. Land b. Notes Payable	=	Choose One: a. Notes Payable b. Retained Earnings	+	Choose One: a. Common Stock b. Cash	+	Choose One: a. Notes Payable b. Retained Earnings
a. Choose One: Fees earned Issued common stock Issued note payable Paid dividends Paid interest expense Paid salary expense Purchased land Rent expense	fill in the blank =?		fill in the blank =?		fill in the blank =?		fill in the blank =?		fill in the blank =?
b. Choose One: Fees earned Investment Issued note payable Paid dividends Paid interest expense Paid salary expense Purchased land Rent expense	fill in the blank =?		fill in the blank =?		fill in the blank =?		fill in the blank =?		fill in the blank =?
Balances	fill in the blank =?		fill in the blank =?		fill in the blank =?		fill in the blank =?		fill in the blank =?
c. Choose One: Fees earned Investment Issued note payable Paid dividends Paid interest expense Paid salary expense Purchased land Rent expense	fill in the blank =?		fill in the blank =?		fill in the blank =?		fill in the blank =?		fill in the blank =?
Balances	fill in the blank =?		fill in the blank =?		fill in the blank =?1		fill in the blank =?		fill in the blank =?
d. Choose One: Fees earned Investment Issued note payable Paid dividends Paid interest expense Paid salary expense Purchased land Rent expense	fill in the blank =?		fill in the blank =?		fill in the blank =?		fill in the blank =?		fill in the blank =?
Balances	fill in the blank =?		fill in the blank =?		fill in the blank =?		fill in the blank =?		fill in the blank =?
e. Choose One: Fees earned Investment Issued note payable Paid dividends Paid expenses Paid salary expense Purchased land Rent expense	fill in the blank =?		fill in the blank =?		fill in the blank =?		fill in the blank =?		fill in the blank =?
Balances	fill in the blank =?		fill in the blank =?		fill in the blank =?		fill in the blank =?		fill in the blank =?
f. Choose One: Fees earned Investment Issued note payable Paid dividends Paid interest expense Paid salary expense Purchased land Rent expense	fill in the blank =?		fill in the blank =?		fill in the blank =?		fill in the blank =?		fill in the blank =?
Balances	fill in the blank =?		fill in the blank =?		fill in the blank =?		fill in the blank =?		fill in the blank =?
g. Choose One: Fees earned Investment Issued note payable Paid dividends Paid interest expense Paid salary expense Purchased land Rent expense	fill in the blank =?		fill in the blank =?		fill in the blank =?		fill in the blank =?		fill in the blank =?
Balances	fill in the blank =?		fill in the blank =?		fill in the blank =?		fill in the blank =?		fill in the blank =?
h. Choose One: Fees earned Investment Issued note payable Paid dividends Paid interest expense Paid salary expense Purchased land Rent expense	fill in the blank =?		fill in the blank =?		fill in the blank =?		fill in the blank =?		fill in the blank =?
Balances	fill in the blank =?		fill in the blank =?		fill in the blank =?		fill in the blank =?		fill in the blank =?
i. Choose One: Fees earned Investment Issued note payable Paid dividends Paid interest expense Paid salary expense Purchased land Rent expense	fill in the blank =?		fill in the blank =?		fill in the blank =?		fill in the blank =?		fill in the blank =?
Balances, March 31	fill in the blank =?		fill in the blank =?		fill in the blank =?		fill in the blank =?		fill in the blank =?
Statement of Cash Flows		Income Statement
a. Choose One: Financing Operating Investing No effect	fill in the blank =?			c. Choose One: Fees earned Rent expense Auto expense Miscellaneous expense Salary expense Interest expense	fill in the blank =?
b. Choose One: Financing Operating Investing No effect	fill in the blank =?			d. Choose One: Fees earned Rent expense Auto expense Miscellaneous expense Salary expense Interest expense	fill in the blank =?
c. Choose One: Financing Operating Investing No effect	fill in the blank =?			e. Choose One: Fees earned Rent expense Auto expense Cash Salary expense Interest expense	fill in the blank =?
d. Choose One: Financing Operating Investing No effect	fill in the blank =?			e. Choose One: Fees earned Rent expense Cash Miscellaneous expense Salary expense Interest expense	fill in the blank =?
e. Choose One: Financing Operating Investing No effect	fill in the blank =?			f. Choose One: Fees earned Rent expense Auto expense Miscellaneous expense Salary expense Interest expense	fill in the blank =?
f. Choose One: Financing Operating Investing No effect	fill in the blank =?			g. Choose One: Fees earned Rent expense Auto expense Miscellaneous expense Salary expense Interest expense	fill in the blank =?
g. Choose One: Financing Operating Investing No effect	fill in the blank =?			Choose One: Net income Net loss	fill in the blank =?
h. Choose One: Financing Operating Investing No effect	fill in the blank =?
i. Choose One: Financing Operating Investing No effect	fill in the blank =?
Choose One: Increase in cash Decrease in cash No effect	fill in the blank =?

2. Which of the following shows the correct effect on the accounting equation for a utility expense that is paid when billed?

a. Increase assets; increase stockholders' equity

b. Decrease assets; decrease stockholders' equity

c. Decrease assets; decrease liabilities

d. Increase liabilities; decrease stockholders' equity

3. Prepare an income statement for July.

Revenues:
Choose one: a. Cash b. Auto expense c. Fees earned d. Interest expense e. Retained earnings	$- ?
Expenses:
Choose one: a. Cash b. Fees earned c. Land d. Note payable e. Salary expense	$- ?
Choose one: a. Cash b. Fees earned c. Land d. Note payable e. Rent expense	$- ?
Choose one: a. Auto expense b. Common stock c. Cash d. Fees earned e. Note payable	$- ?
Choose one: a. Common stock b. Fees earned c. Land d. Note payable e. Interest expense	$- ?
Choose one: a. Cash b. Fees earned c. Miscellaneous expense d. Note payable e. Retained earnings	$- ?
Total expenses	$-?
Choose one: a. Net income b. Net loss	$- ?

Prepare a statement of stockholders' equity for July. If your answer is zero enter "0".

	Common Stock	Retained Earnings	Total
Balances, July 1, 20Y5	$-?	$-?	$-?
Choose One: a. Cash b. Issued common stock c. Issued note payable d. Land e. Salary expense	$-?	$-?	$-?
Choose One: a. Net income b. Net loss	-$-?	- $-?	- $-?
Choose One: a. Dividends b. Plus dividends	- $-?	-$-?	- $-?
Balances, July 31, 20Y5	$-?	$-?	$-?

4. Prepare a balance sheet as of July 31, 20Y5.

Assets
Choose One: a. Common stock b. Cash c. Notes payable d. Rent expense e. Retained earnings		$-?
a. Auto expense b. Common stock c. Land d. Notes payable e. Retained earnings		=?
Total assets		$-?
Liabilities
Choose One: a. Common stock b. Cash c. Land d. Notes payable e. Retained earnings		$-?
Stockholders' Equity
Choose One: a. Common stock b. Fees Earned c. Interest expense d. Land e. Notes payable	$-?
Choose One: a. Land b. Miscellaneous expense c. Notes payable d. Retained earnings e. Salary expense	=?
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 "0".

Cash flows from operating activities:
Cash payment for land Cash payments for dividends Cash receipts from issuing common stock Cash receipts from issuing note payable Cash receipts from operating activities Net cash flows from financing activities Net cash flows from operating activities Net increase in cash during July	$=?
Cash payment for land Cash payments for dividends Cash receipts from issuing common stock Cash receipts from issuing note payable Deduct cash payments for operating activities Net cash flows from financing activities Net cash flows from operating activitiesNet increase in cash during July	=?
Cash payment for land Cash payments for dividends Cash receipts from issuing common stock Cash receipts from issuing note payable Cash receipts from operating activities Deduct cash payments for operating activities Net cash flows from financing activities Net cash flows from operating activities		$=?
Cash flows from investing activities:
Cash payment for land Cash payments for dividends Cash receipts from issuing common stock Cash receipts from issuing note payable Cash receipts from operating activities Deduct cash payments for operating activities Net cash flows from financing activities Net cash flows from operating activities		=?
Cash flows from financing activities:
Cash payment for land Cash receipts from issuing common stock Cash receipts from operating activities Deduct cash payments for operating activities Net cash flows from financing activities Net cash flows from operating activities Net increase in cash during July	$=?
Cash payment for land Cash receipts from issuing note payable Cash receipts from operating activities Deduct cash payments for operating activities Net cash flows from financing activities Net cash flows from operating activities Net increase in cash during July	=?
Cash as of July 1, 20Y5 Cash as of July 31, 20Y5 Cash payment for land Cash payments for dividends Cash receipts from operating activities Deduct cash payments for operating activities Net cash flows from financing activities Net cash flows from operating activities	=?
Cash payment for land Cash payments for dividends Cash receipts from issuing common stock Cash receipts from issuing note payable Cash receipts from operating activities Deduct cash payments for operating activities Net cash flows from financing activities Net cash flows from operating activities		=?
Cash as of July 1, 20Y5 Cash as of July 31, 20Y5 Cash payment for land Cash payments for dividends Cash receipts from issuing common stock Cash receipts from issuing note payable Deduct cash payments for operating activities Net increase in cash during July		$=?
Cash as of July 1, 20Y5 Cash as of July 31, 20Y5 Cash payment for land Cash payments for dividends Cash receipts from issuing note payable Cash receipts from operating activities Deduct cash payments for operating activities Net increase in cash during July		=?
Cash as of July 1, 20Y5 Cash as of July 31, 20Y5 Cash payment for land Cash receipts from issuing common stock Cash receipts from issuing note payable Cash receipts from operating activities Deduct cash payments for operating activities Net increase in cash during July		$=?

I will include images of what these questions look like on the Cengage page.

Safari File Edit View History Bookmarks Window Help Q 8 0 Fri Jan 28 8:20 Check My Work Progress: 6/8 items Email Instructor Save and Exit Submit Assignment for Gradin Assignment Score: 0.0% JAN 10 Ai W 28