The financial statements at the end of Harp Realty's first month of operations are shown below and on the next page.
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Harp Realty
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Income Statement
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For the Month Ended April 30, 2008
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Fees earned
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$28,200
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Expenses:
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Wages expense
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$ (a)
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Rent expense
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2,880
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Supplies expense
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2,400
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Utilities expense
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1,620
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Miscellaneous expense
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990
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Total expenses
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14,340
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Net income
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(b)
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Harp Realty
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Statement of Owner's Equity
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For the Month Ended April 30, 2008
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Iris Sigrist, capital, April 1, 2008
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$ (c)
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Investment on April 1, 2008
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$ (d)
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Net income for April
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(e)
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(f)
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Less withdrawals
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(g)
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Increase in owner's equity
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(h)
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Iris Sigrist, capital, April 30, 2008
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(i)
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Harp Realty
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Balance Sheet
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30-Apr-08
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Assets
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Liabilities
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Cash
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$17,700
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Accounts payable
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$1,440
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Supplies
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1,200
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Owner's Equity
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Land
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(j)
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Iris Sigrist, capital
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(l)
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Total liabilities and
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Total assets
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(k)
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owner's equity
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(m)
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Harp Realty
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Statement of Cash Flows
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For the Month Ended April 30, 2008
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Cash flows from operating activities:
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Cash received from customers
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$ (n)
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Deduct cash payments for expenses and
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payments to creditors
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14,100
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Net cash flow from operating activities
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$ (o)
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Cash flows from investing activities:
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Cash payments for acquisition of land
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(43,200)
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Cash flows from financing activities:
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Cash received as owner's investment
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$54,000
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Deduct cash withdrawal by owner
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7,200
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Net cash flow from financing activities
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(p)
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Net cash flow and June 30, 2008, cash balance
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(q)
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Instructions
By analyzing the interrelationships among the four financial statements, determine the proper amounts for (a) through (q).