P1-2 Missing amounts from financial statements The financial statements at the e
ID: 2395334 • Letter: P
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P1-2 Missing amounts from financial statements The financial statements at the end of Paradise Realty's first month of operations are shown below PARADISE REALTY Income Statement For the Month Ended November 30, 20Y3 $149,300 Operating expenses: Rent ....14,400 . .. 12,000 8,100 ....4,950 Supplies expense Total operating expenses . 69,300 s (b) Net income . .. PARADISE REALTY Retained Earnings Statement For the Month Ended November 30, 20Y3 s (c) s (e) PARADISE REALTY Balance Sheet November 30, 20Y3 Assets 99,200 6,000 Liabilities Note payable 7,200 Stockholders' Equity Capital stock Total liabilities and stockholders' equity... s (k) PARADISE REALTY Statement of Cash FlowsExplanation / Answer
Paradise Realty
Income Statement
November 30 20Y3
Fees Earned
$ 149,300.00
Operating Expenses
Wages Expenses(balancing figure)
$ 29,850.00
Rent Expense
$ 14,400.00
Supplies Expense
$ 12,000.00
Utilities expense
$ 8,100.00
Miscellaneous Expense
$ 4,950.00
Total Manufacturing expense
$ 69,300.00
Net Income
$ 80,000.00
Paradise Realty
Statement of Retained Earnings
Net Earnings for November
$ 80,000.00
Less: Dividends Paid (given in Cash flow)
$ (36,000.00)
Retained earnings November 30 20Y3
$ 44,000.00
Paradise Realty
Balance Sheet
November 30 20Y3
Assets
Cash
$ 99,200.00
Supplies
$ 6,000.00
Land
$ 216,000.00
Total Assets
$ 321,200.00
Liabilities
Notes Payable
$ 7,200.00
Shareholder's Equity
Capital Stock
$ 270,000.00
Retained Earnings
$ 44,000.00
Total Shareholder's Equity
$ 314,000.00
Total Liabilities and Shareholder's equity
$ 321,200.00
Paradise Realty
Cash Flow Statement
November 30 20Y3
Cash From Operating Activities
Cash Received from Customers
$ 149,300.00
Deduct: Cash payment for expenses and payment to creditors
$ (68,100.00)
$ 81,200.00
Net Cash from Operating Activities
Cash flow from Investing Activities
Cash payment for Acquisition of Land
$ (216,000.00)
$ (216,000.00)
Cash flow from Financing Activities
Cash received from issuing capital stock
$ 270,000.00
Deduct Dividends
$ (36,000.00)
Net Cash flow from Financing Activities
$ 234,000.00
Net cash flow and November 30 cash balance
$ 99,200.00
Working
a
$ 29,850.00
Deduct all other expenses from total operating expenses
b
$ 80,000.00
c
$ 80,000.00
d
$ 36,000.00
Given in Cash flow
e
$ 44,000.00
f
$ 216,000.00
Taken form cash flow
g
$ 321,200.00
Balance sheet total
h
$ 270,000.00
Taken form cash flow
i
$ 44,000.00
from retained earning statement
j
$ 314,000.00
Add capital with retained earning
k
$ 321,200.00
Balance sheet total
l
$ 149,300.00
zero balance in Accounts receivable indicate that all payments are received
m
$ 81,200.00
Cash received from customer minus cash payments
n
$ 234,000.00
o
$ 99,200.00
total cash balance
Part 1 Answer - Hamel Realty can be considered as a service business.
Paradise Realty
Income Statement
November 30 20Y3
Fees Earned
$ 149,300.00
Operating Expenses
Wages Expenses(balancing figure)
$ 29,850.00
Rent Expense
$ 14,400.00
Supplies Expense
$ 12,000.00
Utilities expense
$ 8,100.00
Miscellaneous Expense
$ 4,950.00
Total Manufacturing expense
$ 69,300.00
Net Income
$ 80,000.00
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