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1 year ago

Sanyu Sony started a new business and completed these transactions during December.

Business

1 answer:

Vitek1552 [10]1 year ago

7 0

Answer:

Sanyu Sony

Income Statement

For the month ended December 31

Revenue $7,100

Less: Operating expenses 2,940

Net Income $4,160

Sanyu Sony

Statement of Retained earnings

For the month ended December 31

December 1 $ -

Add: Net Income 4,160

Less: Dividends 950

December 31 $3,210

Sanyu Sony

Balance Sheet

As of December 31

Asset

Current Assets

Cash $59,180

Acounts receivable 900

Office supplies 1,150

Total current assets $61,230

Non-current assets

Equipment 15,530

Total assets $76,760

Liabilities and Owner's Equity

Current liability

Accounts Payable $350

Non-current liability

Note Payable 8,200

Total liabilities $8,550

Owner's Equity

Common Stock $65,000

Retained earnings 3,210

Total equity $68,210

Total liabilities and Equity $76,760

Sanyu Sony

Statement of Cash Flows

For the month ended December 31

Net Income $4,160

Changes in working capital:

Increase in:

Accounts receivable (900)

Office supplies (1,150)

Increase in:

Accounts payable 350

Net cash provided by operating activities $2,460

Cash flow used in investing activity

Acquisition of equipment (15,530)

Increase in Notes payable 8,200

Payment in dividends (950)

Cash flow used in investing activities (8,280)

Cash flow from financing activity

Collection of subscriptions receivable 65,000

CASH AT END OF DECEMBER $59,180

Explanation:

Balance sheet is a statement of financial position that consists of 3 sections; Assets, liabilities and equity. It summarizes the financial balances of the company's accounts. All real accounts will be reflected in balance sheet.

Income statement shows the nominal accounts of the company. It shows how well the company performs during the period thru its revenue and expenses summary that is reflected in this statement.

Statement of Retained earnings shows the balances of the retained earnings for the period.

Statement of cash flows has 3 sections; operating, investing and financing activities.

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