The financial statements at the end of Paradise Realty’s first month of operations are shown below.

Instructions

1. Would you classify a realty business such as Hamel Realty as a manufacturing, merchandising, or service business?

2. By analyzing the interrelationships among the financial statements, determine the proper amounts for (a) through (o).

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PARADISE REALTY Income Statement For the Month Ended November 30, 20Y3 Fees earned ... $149,300 Operating expenses: Wages expense.. Rent expense.. Supplies expense Utilities expense... Miscellaneous expense Total operating expenses $ (a) 14,400 12,000 8,100 4,950 (69,300) Net income $ (b) PARADISE REALTY Statement of Stockholders' Equity For the Month Ended November 30, 20Y3 Common Retained Stock $ 0 Total Earnings $ 0 Balances, Nov. 1, 20Y3 .... $ 0 Issuance of common stock. 270,000 270,000 (C) (d) (c) (d) Net income Dividends.. Balances, Nov. 30, 20Y3. $270,000 $(e) $314,000