1. Net income: $31,200 PR 1-3A Financial statements OBJ.5 Seth Feye established Reliance Financial Services on July 1, 2042. Reliance Financial Services offers financial planning advice to its clients. The effect of each transaction and the balances after each transaction for July follow: Owner's Equity Feye Salaries Rent Auto Supplies Misc Expense - Expense - Expense - Expense - Expense Assets Liabilities + Seth Seth Accounts Accounts Cash + Receivable + Supplies - Payable + Capital - Drawing + Earned Feye, Fees a. +50,000 +50,000 b. +7,000 +7.000 Bal. 50,000 7,000 7.000 50,000 -3,600 -3.600 Bal. 46,400 7,000 3,400 50,000 d. +110,000 +110,000 Bal 156,400 7,000 3,400 50,000 110,000 e -33,000 Bal. 123.400 7,000 3,400 50,000 110,000 f -20,800 102,600 7,000 3,400 50,000 110,000 9 -55,000 Bal 47,600 7.000 3,400 50,000 110,000 h. 4,500 Bal 47,600 2.500 3,400 50,000 110.000 +34,500 + 34,500 Bal 47,600 34,500 2.500 3.400 50,000 144,500 -15,000 -15,000 Bal 32,600 34,500 2,500 3,400 50,000 -15,000 144,500 -33,000 -33,000 Bal. -33,000 -16,000 -16,000 4,800 4.800 -55,000 -55.000 -33,000 - 16,000 4.800 --55,000 -33,000 -16,000 -4,500 4.500 4.800 -55,000 -33,000 -16,000 -4,500 -4.800 -55,000 33,000 -16,000 4,500 -4.800 Instructions 1. Prepare an income statement for the month ended July 31, 2012, 2. Prepare a statement of owner's equity for the month ended July 31, 2012 3. Prepare a balance sheet as of July 31, 20Y2. 4. (Optional) Prepare a statement of cash flows for the month ending July 31, 2012