Transactions and Financial Statements

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

1. Opened a business bank account in the name of Stanley Insurance Inc., with a deposit of $48,000 in exchange for common stock.
2. Borrowed $25,000 by issuing a note payable.
3. Received cash from fees earned, $29,000.
4. Paid rent on office and equipment for the month, $3,200.
5. Paid automobile expense for the month, $2,000, and miscellaneous expense, $1,000.
6. Paid office salaries, $4,500.
7. Paid interest on the note payable, $110.
8. Purchased land as a future building site, $56,500.
9. Paid dividends, $4,400.

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: Common Stock Cash	+	Choose One: Land Notes Payable	=	Choose One: Notes Payable Retained Earnings	+	Choose One: Common Stock Cash	+	Choose One: Notes Payable 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 55da14fcbf8c00e_17
Balances	fill in the blank		fill in the blank		fill in the blank		fill in the blank		fill in the blank 55da14fcbf8c00e_22
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 55da14fcbf8c00e_28
Balances	fill in the blank		fill in the blank		fill in the blank		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, July 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. Financing Operating Investing No effect	fill in the blank			e. Fees earned Rent expense Auto expense Cash Salary expense Interest expense	fill in the blank
d. Financing Operating Investing No effect	fill in the blank			e. Fees earned Rent expense Cash Miscellaneous expense Salary expense Interest expense	fill in the blank
e. Financing Operating Investing No effect	fill in the blank			f. Fees earned Rent expense Auto expense Miscellaneous expense Salary expense Interest expense	fill in the blank
f. Financing Operating Investing No effect	fill in the blank			g. Fees earned Rent expense Auto expense Miscellaneous expense Salary expense Interest expense	fill in the blank
g. Financing Operating Investing No effect	fill in the blank			Choose One: Net income Net loss	fill in the blank
h. Financing Operating Investing No effect	fill in the blank
i. 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: Cash Auto expense Fees earned Interest expense Retained earnings		=$?
Expenses:
Choose One: Cash Fees earned Note payable Retained earnings Salary expense	=$?
Cash Fees earned Land Note payable Rent expense	=?
Auto expense Common stock Cash Fees earned Note payable	=?
Common stock Fees earned Land Note payable Interest expense	=?
Cash Fees earned Miscellaneous expense Note payable Retained earnings	=?
Total expenses		fill in the blank =?
Net income		fill in the blank =$?

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

	Common Stock	Retained Earnings	Total
Balances, July 1, 20Y5	=$?	=$?	=$?
Choose One: Cash Issued common stock Issued note payable Land Salary expense	=?	=?	=?
Choose One: Net income Net loss	=?	=?	=?
Choose One: Dividends Common stock Retained earnings Plus dividends	=?	=?	=?
Balances, July 31, 20Y5	=$?	=$?	=$?

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

Assets
Choose One: Common stock Cash Notes payable Rent expense Retained earnings		=$?
Choose One: Common stock Auto expense Land Notes payable Retained earnings		=?
Total assets		=$?
Liabilities
Choose One: Common stock Cash Land Notes payable Retained earnings		=$?
Stockholders' Equity
Choose One: Common stock Fees Earned Interest expense Land Notes payable	=$?
Choose One: Land Miscellaneous expense Notes payable Retained earnings 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:
Choose One: 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	=$?
Choose One: Cash payment for land Cash payments for dividends Cash receipts from issuing common stock Cash receipts from issuing note payable Deduct cash payments for operating activities Net cash flows from financing activities Net cash flows from operating activities Net increase in cash during July	=?
Choose One: Cash payment for land Cash payments for dividends Cash receipts from issuing common stock Cash receipts from issuing note payable Cash receipts from operating activities Deduct cash payments for operating activities Net cash flows from financing activities Net cash flows from operating activities		=$?
Cash flows from investing activities:
Choose One: 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:
Choose One: 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	=$?
Choose One: Cash payment for land Cash receipts from issuing note payable Cash receipts from operating activities Deduct cash payments for operating activities Net cash flows from financing activities Net cash flows from operating activities Net increase in cash during July	=?
Choose One: Cash as of July 1, 20Y5 Cash as of July 31, 20Y5 Cash payment for land Cash payments for dividends Cash receipts from operating activities Deduct cash payments for operating activities Net cash flows from financing activities Net cash flows from operating activities	=?
Choose One: Cash payment for land Cash payments for dividends Cash receipts from issuing common stock Cash receipts from issuing note payable Cash receipts from operating activities Deduct cash payments for operating activities Net cash flows from financing activities Net cash flows from operating activities		=?
Cash as of July 1, 20Y5 Cash as of July 31, 20Y5 Cash payment for land Cash payments for dividends Cash receipts from issuing common stock Cash receipts from issuing note payable Deduct cash payments for operating activities Net increase in cash during July		=$?
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		=$?

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Safari File Edit View History Bookmarks Window Help Q . . . D v2.cengagenow.com + 88 Course Module.. Topic: (DB 3) -... (PR): Press Rel. "#1) Week 1-Cen.. 2) Week 2-Cen... $ 3 ) Week 2 - Cen . My Home Week 2-Cengage Assignment eBook Show Me How Video EX.02-01 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 cash outflows as negative amounts. . EX.02-01.Algo Balance Sheet 3. EX.02-04 Statement of Cash Flows . Assets 11 Liabilities Stockholders' Equity . EX.02-04.Algo 1 + + + . EX.02-09 . PR.02-01 Fees earned . PR.02-01.Algo Issued common stock 8. PR.02-02