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).

Transcribed Image Text:

PARADISE REALTY Income Statement For the Month Ended November 30, 20Y3 $149300 Wages expense.... S (a) Supplies expense Total operating expenses Net income s (b) PARADISE REALTY For the Month Ended November 30, 20Y3 Common Retained Stock Earnin Total $ 0 0 270,000 Balances, Nov. 30, 20Y3.. $270,000 S(e $314,000 PARADISE REALTY Balance Sheet November 30, 20Y3 Assets ah. $99,200 6,000 S (a) Liabilities Note payable 7,200 Stockholders'Equity Total stockholders'equity $ (k) PARADISE REALTY Statement of Cash Flows For the Month Ended November 30, 20Y3 Cash fl ws from operating activities: Cash paid for expenses and to creditors.......................... (68,100) S n) Cash fl ws used for investing activities: Cash paid for acquisition of land............... (216,000) Cash fl ws from financing a tivities: Cash received from issuing common stock........ . .. . .. . .. .. $270,000 . .. . Fk:in««a:icash duig muii S (o) 0 Cash as of November 30 S (o)