The financial statements at the end of Palo Duro Realty’s first month of operations are shown at the top of the next page.
Palo Duro RealtyIncome StatementFor the Month Ended November 30,2010________________________________________________________________________
Fees earned. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Expenses:Wages expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . Rent expense. . . . . . . . . . . . . . . . . . . . . . .. . . . . . .Supplies expense.. . . . . . . . . . . . . . . . . . . . . . . . . .Utilities expense.. . . . . . . . . . . . . . . . . . . . . . . . . . Miscellaneous expense. . . . . . . . . . . . . . . . . . . . . .Total expenses. . . . . . . . . . . . . . . . . . . . . . . . . .Net income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$51,00019,200(b)10,800 6,600$(a) 105,600$74,400
Palo Duro RealtyStatement of Owner’s EquityFor the Month Ended November 30,2010________________________________________________________________________
Laura Biddle, capital, November 1, 2010. . . . . . . . . . . . . . . Investment on November 1, 2010. . . . . . . . . . . . . . . . . . . . .Net income for November. . . . . . . . . . . . . . . . . . . . . . . . . . . Less withdrawals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Increase in owner’s equity . . . . . . . . . . . . . . . .. . . . . . . . . . .Laura Biddle, capital, November 31, 2010. . . . . . . . . . . . . . $240,000(d)(e)6,000$(c)(f)(g)
Palo Duro RealtyBalance SheetNovember 30,2010________________________________________________________________________
AssetsCash . . . . . . . . . . . .Supplies. . . . . . . . . .Land . . . . . . . . . . . .Total assets. . . . . . . $26,70021,300240,000(h)LiabilitiesAccounts payable. . . . . . . . . . . . . .Owner’s EquityLaura Biddle, capital . . . . . . . . . . .Total liabilities and owner’s equity.$9,600(i)(j)
Palo Duro RealtyStatement of Cash FlowsFor the Month Ended November 30,2010________________________________________________________________________
Cash flows from operating activities:Cash received from customers. . . . . . . . . . . . . . . . . . . . . . . . . . . .Deduct cash payments for expenses and payments to creditors. .Net cash flow from operating activities. . . . . . . . . . . . . . . . . . . . .Cash flows from investing activities:Cash payments for acquisition of land. . . . . . . . . . . . . . . . . . . . . .Cash flows from financing activities:Cash received as owner’s investment. . . . . . . . . . . . . . . . . . . . . . .Deduct cash withdrawal by owner. . . . . . . . . . . . . . . . . . . . . . . . .Net cash flow from financing activities. . . . . . . . . . . . . . . . . . . . . .Net cash flow and November 30, 2010, cash balance. . . . . . . . . . . . . . . .$(k)117,300(n)(o)$(l)(m)(p)(q)
Instructions
By analyzing the interrelationships among the four financial statements, determine the proper amounts for (a) through (q).