The financial statements at the end of Wolverine Realty’s first month of operations can be found in the panels of this problem. By analyzing the interrelationships among the four financial statements, determine the proper amounts for (a) through (p) and enter the amounts in the cell to the right of each letter.
1 Fees earned (a)
2 Expenses:
3 Wages expense $300,000.00
4 Rent expense 100,000.00
5 Supplies expense (b)
6 Utilities expense 20,000.00
7 Miscellaneous expense 25,000.00
8 Total expenses 475,000.00
9 Net income $275,000.00
Wolverine Realty
Statement of Owner’s Equity
For the Month Ended April 30, 2019
1 Dakota Rowe, capital, April 1, 2019 (c)
2 Investment on April 1, 2019 $375,000.00
3 Net income for April (d)
4 Withdrawals (125,000.00)
5 Increase in owner’s equity (f)
6 Dakota Rowe, capital, April 30, 2019 (g)
Wolverine Realty
Balance Sheet
April 30, 2019
1 Assets
2 Cash $462,500.00
3 Supplies 12,500.00
4 Land 150,000.00
5 Total assets (h)
6 Liabilities
7 Accounts payable $100,000.00
8 Owner’s equity
9 Dakota Rowe, capital (i)
10 Total liabilities and owner’s equity (j)
Wolverine Realty
Statement of Cash Flows
For the Month Ended April 30, 2019
1 Cash flows from operating activities:
2 Cash receipts from customers (k)
3 Cash payments for expenses and payments to creditors (387,500.00)
4 Net cash flow from operating activities (l)
5 Cash flows from investing activities:
6 Cash payments for acquisition of land (m)
7 Cash flows from financing activities:
8 Cash receipt of owner’s investment (n)
9 Cash withdrawals by owner (o)
10 Net cash flow from financing activities (p)
11 Net increase (decrease) in cash and April 30, 2019, cash balance (q)