Missing amounts from Financial statements
The financial statements at the end of Network Realty, Inc.’s first month of operations are shown below. 11y analyzing the interrelationships among the financial statements, fill in the proper amounts for (a) through (s).
Concept Introduction:
Income statement is a part of financial statements of a company which provides a true and fair view of the working of the company's earnings and growth. It gives the net income or profit after adjustments of all expenses.
The statement of stockholder's equity belongs to balance sheet. It is a statement about owner's equity, i.e., contribution made by the owner in the business which shows the changes in the holder's equity after giving the effect of retained earnings and dividend on the contribution of the owner.
Balance sheet is a part of financial statements of a company which provides an overall view of assets and liabilities along with equity of the company. This statement is prepared on a specified date containing all the ending balances of the financial accounts in regard to assets, liabilities, and equity.
To Find out:
The missing amounts in income statement, statement of stockholder's equity, balance sheet, and cash flow statement for the month ended
Answer to Problem 2.5P
Total Revenue (Fees earned) is
Utility Expenseis
Net Income is
Beginning Balance of Retained Earnings is
Dividend Paid to Stockholders is
Balance of Retained Earning at the end of the month is
Balance of Stockholder's equity fund
at the end of the month is
Cash Balance at the end of the month is
Balance of common stock at the end of the month is
Balance of Retained Earning at the end of the month is
Balance of Total Stockholder's Equity the end of the month is
Total Liabilities and Stockholder's Equity is
Net Cash Flows from Operating Expenses is
Cash Received from issuing notes payable is
Net Cash Flows from financing activities is
Explanation of Solution
Network Reality, Inc
Income Statement
for the month endedDecember,
Particulars | | Amount |
Revenues | ||
Fees Earned | | |
Total Revenue | | |
Less: Expenses | ||
Wages Expenses | | |
Rent Expense | | |
Utility Expense | | |
Interest Expense | | |
Miscellaneous Expense | | |
Total Operating Expenses | | |
Net Income | |
(c) Net Income was given in the Statement of the Stockholder's Equity for the month of December,
(d) Balance of Retained Earnings on beginning of the month is
(e) Dividend Paid to Stockholders is
Network Reality, Inc
Statement of Stockholder's Equity
for the month endedDecember,
Particulars | Common Stock | Retained Earnings | Total |
Balance on 1 Dec 2014 | | | |
Issued Common Stock | | | |
Net Income | | | |
Dividends | | | |
The balance on 1 Dec 2014 | | | |
Network Reality, Inc
Balance Sheet
for the month endedDecember,
ASSETS | AMOUNT | AMOUNT |
Cash | | |
Land | | |
Total Assets | | |
LIABILITIES | ||
Notes Payable | | |
Stakeholder's Equity | ||
Common Stock | | |
Retained Earnings | | |
Total Liabilities | |
Cash Balance will be balancing figure of Total Assets and Land.
Balance of Retained Earnings and Common stock will be taken from Statement of Stakeholder's Equity Statement.
Network Reality, Inc
Cash Flow Statement
for the month endedDecember,
Particulars | Amount | |
Cash flow from operating activity | ||
Cash received from customers | | |
Cash Paid for Expenses | | |
Net Cash Flows from Operating Activity | | |
Cash flow from Investment activity | ||
Cash paid for purchase of Land | | |
Cash Flows From financing activity | ||
Cash received from issuing | | |
Cash received from issuing notes payable | | |
Cash Dividend Paid to Stakeholder's | | |
Net cash flows from Financing Activities | | |
Net Increase in Cash | | |
December 01, 2014, cash balance | | |
December 31, 2014, cash balance | |
Cash Balance at the beginning of the month of December is
Cash Received from issuing notes payable was issued in this current month taken from the balance sheet.
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