the financial statements at the end of alpine realty rsquo s first month of operatio 551153

Alpine Realty

Income Statement

For the Month Ended June 30, 2012

Fees earned

$ (a)

Expenses:

Wages expense

$120,000

Rent expense

40,000

Supplies expense

(b)

Utilities expense

8,000

Miscellaneous expense

10,000

Total expenses

190,000

Net income

$110,000

Alpine Realty

Statement of Owner’s Equity

For the Month Ended June 30, 2012

Aaron Gilbert, capital, June 1, 2012

$ (c)

Investment on June 1, 2012

$150,000

Net income for June

(d)

Less withdrawals

$ (e)

Increase in owner’s equity

50,000

(f )

Aaron Gilbert, capital, June 30, 2012

$ (g)

Alpine Realty

Balance Sheet

June 30, 2012

Assets

Liabilities

Cash

$185,000

Accounts payable

$40,000

Supplies

5,000

Owner’s Equity

Land

60,000

Aaron Gilbert, capital

(i)

Total assets

$ (h)

Total liabilities and owner’s equity

$ (j)

Alpine Realty

Statement of Cash Flows

For the Month Ended June 30, 2012

Cash flows from operating activities:

Cash received from customers

$ (k)

Deduct cash payments for expenses and payments to creditors

155,000

Net cash flow from operating activities

$ (l)

Cash flows from investing activities:

Cash payments for acquisition of land

(m)

Cash flows from financing activities:

$ (n)

Cash received as owner’s investment

(o)

Deduct cash withdrawal by owner

Net cash flow from financing activities

(p)

Net cash flow and June 30, 2012, cash balance

$ (q)