The financial statements at the end of Atlas Realty's first month of operations followAtlas RealtyIncome StatementFor the Month Ended May 31, 2019Fees earned.$400,000ExpensesWages expense(a)Rent expenseSupplies expenseUtilities expenseMiscellaneous expense48,00017,60014,4004,800Total expenses..288,000(b)Net incomeAtlas RealtyStatement of Owner's EquityFor the Month Ended May 31, 2019LuAnn Martin, capital, May 1,2019Investment on May 1, 2019.Net income for MayWithdrawalsIncrease in owner's equity(c)(d)(e)(f)(g)LuAnn Martin, capital, May 31, 2019(h)Atlas RealtyBalance SheetMay 31, 2019AssetsCash$123,200Supplies.12,800LandTotal assetsLlabilitlesAccounts payable48,000Ownar's EquityLuAnn Martin, capital.Total liabilities and owner's equity(k)(DAtlas RealtyStatement of Cash FlowsFor the Month Ended May 31,2019Cash flows from operating activities:Cash receipts from customers.Cash payments for expenses and payments to creditors..Net cash flow from operating activitiesCash flows from investing activitiesCash payments for acquisition of landCash flows from financing activitiesCash receipt of owner's investmentCash withdrawals by owner(m)(252800)(n)(120,000)160,000(64,000)Net cash flow from financing activitiesNet increase (decrease) in cash and May 31, 2019, cash balance.(o)(p)InstructionsBy analyzing the interrelationships among the four financial statements, determine theproper amounts for (a) through (p)

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Asked Dec 2, 2019
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The financial statements at the end of Atlas Realty's first month of operations follow
Atlas Realty
Income Statement
For the Month Ended May 31, 2019
Fees earned.
$400,000
Expenses
Wages expense
(a)
Rent expense
Supplies expense
Utilities expense
Miscellaneous expense
48,000
17,600
14,400
4,800
Total expenses..
288,000
(b)
Net income
Atlas Realty
Statement of Owner's Equity
For the Month Ended May 31, 2019
LuAnn Martin, capital, May 1,2019
Investment on May 1, 2019.
Net income for May
Withdrawals
Increase in owner's equity
(c)
(d)
(e)
(f)
(g)
LuAnn Martin, capital, May 31, 2019
(h)
Atlas Realty
Balance Sheet
May 31, 2019
Assets
Cash
$123,200
Supplies.
12,800
Land
Total assets
Llabilitles
Accounts payable
48,000
Ownar's Equity
LuAnn Martin, capital.
Total liabilities and owner's equity
(k)
(D
Atlas Realty
Statement of Cash Flows
For the Month Ended May 31,2019
Cash flows from operating activities:
Cash receipts from customers.
Cash payments for expenses and payments to creditors..
Net cash flow from operating activities
Cash flows from investing activities
Cash payments for acquisition of land
Cash flows from financing activities
Cash receipt of owner's investment
Cash withdrawals by owner
(m)
(252800)
(n)
(120,000)
160,000
(64,000)
Net cash flow from financing activities
Net increase (decrease) in cash and May 31, 2019, cash balance.
(o)
(p)
Instructions
By analyzing the interrelationships among the four financial statements, determine the
proper amounts for (a) through (p)
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The financial statements at the end of Atlas Realty's first month of operations follow Atlas Realty Income Statement For the Month Ended May 31, 2019 Fees earned. $400,000 Expenses Wages expense (a) Rent expense Supplies expense Utilities expense Miscellaneous expense 48,000 17,600 14,400 4,800 Total expenses.. 288,000 (b) Net income Atlas Realty Statement of Owner's Equity For the Month Ended May 31, 2019 LuAnn Martin, capital, May 1,2019 Investment on May 1, 2019. Net income for May Withdrawals Increase in owner's equity (c) (d) (e) (f) (g) LuAnn Martin, capital, May 31, 2019 (h) Atlas Realty Balance Sheet May 31, 2019 Assets Cash $123,200 Supplies. 12,800 Land Total assets Llabilitles Accounts payable 48,000 Ownar's Equity LuAnn Martin, capital. Total liabilities and owner's equity (k) (D Atlas Realty Statement of Cash Flows For the Month Ended May 31,2019 Cash flows from operating activities: Cash receipts from customers. Cash payments for expenses and payments to creditors.. Net cash flow from operating activities Cash flows from investing activities Cash payments for acquisition of land Cash flows from financing activities Cash receipt of owner's investment Cash withdrawals by owner (m) (252800) (n) (120,000) 160,000 (64,000) Net cash flow from financing activities Net increase (decrease) in cash and May 31, 2019, cash balance. (o) (p) Instructions By analyzing the interrelationships among the four financial statements, determine the proper amounts for (a) through (p)

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Expert Answer

Step 1

Determine the proper amounts for (a) through (p).

First, determine the missing amount for (a) and (b).

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(a) Calculate wages expense Total Wages Expense Expenses /(Utilites Expense) + (Supplies Expense) + ] (Rent Expense)+(Miscellaneous Expense) =$288, 000 ($14, 400 +$17,600 + $48, 000+$4, 800) $288, 000 $84,800 =$203, 200 (b) Calculate Net income Net Income = Revenue - Expense = $400,000$288,000 $112,000

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Step 2

Calculate the missing amount for (c), (d), (e),(f), and (g).

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(c) Calculate LM, capital at May 1, 2019 As the business is in first month of operation, the beginning capital would be $0. (d) Calculate investment of May 1, 2019. Cash receipts of owner's Investment of $160,000 is provided in the statement of cash flows are transferred to the statement of owner's equity. (e) Calculate net income for May. Net income of $112,000 calculated in the income statement is transferred to the statement of owner's equity (f) Calculate withdrawals. Cash withdrawby owner of $64,000 is provided in the statement of cash flows are transferred to the statement of owner's equity. (s) Calculate increase in owner's equity Investment on May 1, 2019 Net income for May $160,000 +$112,000-S64,000 Increase in owners' equity Withdrawals =$208,000

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Step 3

Calculate missing amount for ...

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(h) Calculate LM, capital at May 31,2019 LM, Capital at May 31, 2019 LN, Capital at May 1, 2019 Increase in Owner's equity = $0 +$208,000 $208,000 Calculate the amount of land. Land of $120,000 shown in the statement of cash flows is transferred to the balance sheet. Calculate the total assets. Total assets Cash +Supplies +Land $123, 200 $12, 8000+$120, 000 = $256, 000 (k) Calculate LM, capital. LM, capital of $208,000 calculated in the statement of owner's equity is transferred to the balance sheet.

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