Question

Seth Feye established Reliance Financial Services on July 1, 2016. Reliance Financial Services offers financial planning advice to its clients. The effect of each transaction and the balances after each transaction for July follow:

Assets				=Liabilities	+ Owners Equity
		Accounts		Accounts	Seth Feye,	Seth Feye,	Fees	Salaries	Rent	Auto	Supplies	Misc.
	Cash	Receivable	+ Supplies	= Payable	+ Capital	- Drawing	+ Earned	- Expense	- Expense	- Expense	- Expense	- Expense
a.	+55,000				+55,000
b.			+7,400	+7,400
Bal.	55,000		7,400	7,400	55,000
c.	-3,400			-3,400
Bal.	51,600		7,400	4,000	55,000
d.	+103,000						+103,000
Bal.	154,600		7,400	4,000	55,000		103,000
e.	-33,400								-33,400
Bal.	121,200		7,400	4,000	55,000		103,000		-33,400
f.	-20,900									-15,000		-5,900
Bal.	100,300		7,400	4,000	55,000		103,000		-33,400	-15,000		-5,900
g.	-57,000							-57,000
Bal.	43,300		7,400	4,000	55,000		103,000	-57,000	-33,400	-15,000		-5,900
h.			-3,500								-3,500
Bal.	43,300		3,900	4,000	55,000		103,000	-57,000	-33,400	-15,000	-3,500	-5,900
i.		+31,500					+31,500
Bal.	43,300	31,500	3,900	4,000	55,000		134,500	-57,000	-33,400	-15,000	-3,500	-5,900
j.	-13,500					-13,500
Bal.	29,800	31,500	3,900	4,000	55,000	-13,500	134,500	-57,000	-33,400	-15,000	-3,500	-5,900

	Required:
1.	Prepare an income statement for the Month Ended July 31, 2016.*
2.	Prepare a statement of owner’s equity for the Month Ended July 31, 2016.*
3.	Prepare a balance sheet as of July 31, 2016.*
4.	Prepare a statement of cash flows for the month ending July 31, 2016.* * Refer to the lists of Accounts in the information given, Labels, and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. If there is a net loss, enter that amount as a negative number using a minus sign. Enter amounts that represent cash outflows as a negative number using a minus sign. You will not need to enter colons (:) or the word Deduct on the financial statements.

Answer 1