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Missing Amounts from Financial Statements The financial statements at the end of Paradise Realty's first month of operations are shown below.

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

Fees earned

 

 

 

$352,900 

Operating expenses:

 

 

 

 

Wages expense

 

$ (a)

 

 

Rent expense

 

63,522

 

 

Supplies expense

 

53,994

 

 

Utilities expense

 

44,465

 

 

Miscellaneous expense

 

15,881

 

 

    Total operating expenses

 

 

 

(255,500)

Net income

 

 

 

$ (b)

 

PARADISE REALTY

Statement of Stockholders' Equity

For the Month Ended November 30, 20Y3

 

Common Stock

Retained Earnings

Total

Balances, Nov. 1, 20Y3

 

$0

 

$0

 

 

$0

 

Issuance of common stock

 

274,000

 

 

 

 

274,000

 

Net income

 

 

 

(c)

 

 

(c)

 

Dividends

 

 

 

(d)

 

 

(d)

 

Balances, Nov. 30, 20Y3

 

$274,000

 

$(e)

 

 

$346,740

 

 

November 30, 20Y3

 

Assets

 

Cash

 

$ 188,775

 

Supplies

 

72,892

 

Land

 

(f)

 

Total assets

 

$ (g)

 

Liabilities

 

Note payable

 

$ 124,927

 

Stockholders' Equity

 

Common stock

$ (h)

 

 

Retained earnings

(i)

 

 

Total stockholders' equity

(j)

 

Total liabilities and stockholders' equity

(k)

 

PARADISE REALTY

Statement of Cash Flows

For the Month Ended November 30, 20Y3

Cash flows from operating activities:

Cash received from customers

$ (l)

Deduct cash payments for expenses and payments to creditors

(203,465)

Net cash flows from operating activities

$ (m)

Cash flows used for investing activities:

Cash payments for acquisition of land

(210,000)

Cash flows from financing activities:

Cash received from issuing common stock

$ 274,000

Deduct dividends

(24,660)

Net cash flows from financing activities

(n)

Net increase in cash during month

(o)

Cash as of November 1

0

Cash as of November 30

(o)

Instructions:

Instructions:

1. Would you classify a realty business such as Paradise Realty as a manufacturing, merchandising, or service business?

manufacturing business 

2. By analyzing the interrelationships among the financial statements, determine the proper amounts for (a) through (o). Enter all amounts as positive numbers.

a. Wages expense

$

b. Net income

$

c. Net income for November

$

d. Dividends

$

e. Retained earnings, November 30, 20Y3

$

f. Land

$

g. Total assets

$

h. Common stock

$

i. Retained earnings

$

j. Total stockholders' equity

$

k. Total liabilities and stockholders' equity

$

l. Cash received from customers

$

m. Net cash flows from operating activities

$

n. Net cash flows from financing activities

$

o. Net cash flow and November 30, 20Y3 cash balance

$

 

Top Answer

a. Wages expense $77,638 b. Net income $97,400 c. Net income for November $97,400 d. Dividends ($24,660) e. Retained... View the full answer

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