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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
Seth Feye established Reliance Financial Services on July 1, 2019. Reliance Financial Services offers financial planning advice to its clients. The effect of each transaction and the balances after each transaction for July follow:

Transcribed Image Text:=Liabilities +
Assets
Owner's Equity
Seth
Feye,
Payable Capital -Drawing Earned
Seth
Salaries
Supplies
Accounts
Accounts
Feye,
Fees
Rent
Auto
Misc
Receivable +Supplies
Expense Expense
Cash
Expense Expense
Expense
+50,000
+50,000
а.
b.
+7,000
+7,000
Bal
50,000
7,000
7,000
50,000
3,600
3,600
C.
Bal
7,000
3,400
46,400
50,000
d.
110,000
Bal
+110,000
7,000
156,400
3,400
50,000
110,000
33,000
-33,000
е.
Bal
123,400
50,000
110,000
-33,000
7,000
3,400
f.
-16,000
-4,800
-20,800
Bal.
7,000
3,400
-33,000
-4,800
102,600
50,000
110,000
-16,000
-55,000
-55,000
g.
Bal.
7,000
50,000
47,600
3,400
110,000
-55,000
33,000
-16,000
-4,800
h.
-4,500
-4,500
Bal
47,600
2,500
3,400
50,000
110,000
-55,000
33,000
-16,000
-4,500
-4,800
34,500
i.
+34,500
Bal.
50,000
47,600
34,500
2,500
3,400
144,500
-55,000
-33,000
-16,000
-4,500
-4,800
j.
-15,000
-15,000
Bal
-4,500
34,500
2,500
3,400
-55,000
-33,000
-16,000
-4,800
32,600
50,000 -15,000
144,500
Instructions
1. Prepare an income statement for the month ended July 31, 2019.
2. Prepare a statement of owner's equity for the month ended July 31, 2019.
3. Prepare a balance sheet as of July 31, 2019
4. (Optional) Prepare a statement of cash flows for the month ending July 31, 2019
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