the financial statements at the end of cyber realty rsquo s first month of operation 551159

Cyber Realty

Income Statement

For the Month Ended October 31, 2012

Fees earned

$250,000

Expenses:

Wages expense

$ (a)

Rent expense

30,000

Supplies expense

11,000

Utilities expense

9,000

Miscellaneous expense

3,000

Total expenses

$180,000

Net income

$ (b)

Cyber Realty

Statement of Owner’s Equity

For the Month Ended October 31, 2012

Kendra Garcia, capital, October 1, 2012

$ (c)

Investment on October 1, 2012

$ (d)

Net income for October

(e)

$ (f )

Less withdrawals

(g)

Increase in owner’s equity

(h)

Kendra Garcia, capital, October 31, 2012

$ (i)

Cyber Realty

Balance Sheet

October 31, 2012

Assets

Liabilities

Cash

$77,000

Accounts payable

$30,000

Supplies

8,000

Owner’s Equity

Land

(j)

Kendra Garcia, capital

(l)

Total assets

$ (k)

Total liabilities and owner’s equity

$ (m)

Cyber Realty

Statement of Cash Flows

For the Month Ended October 31, 2012

Cash flows from operating activities:

Cash received from customers

$ (n)

Deduct cash payments for expenses and payments to creditors

158,000

Net cash flow from operating activities

$0

Cash flows from investing activities:

Cash payments for acquisition of land

-75,000

Cash flows from financing activities:

Cash received as owner’s investment

$100,000

Deduct cash withdrawal by owner

40,000

Net cash flow from financing activities

(p)

Net cash flow and October 31, 2012, cash balance

$ (q)