1 Homework KQuestion 2 of 2 IThe following informetion appli

1 Homework KQuestion 2 (of 2) IThe following informetion applies to the questions displayed below] Sanyu Sony started a new business and completed these transactions during December. 1 Sanyu Sony transferred $66.000 cosh from 2 The company rented office space and paid $1,300 cash for the December rent Dec. a personal savings account to a checking account in the name of Sony Electric in exchange for its common stock to a c of electrical equipment by paying $6.500 cash and agreeing to pay the $8.200 balance in 30 days 5 The company purchased office suppliles by paying $900 cash. e company completed electncal work and immediately collected $1700 cash for these services 8 The company purchased $2660 of office equipment on credit 15 the company completed electracal work on credit in the amount of $5100. 18 The company purchased $310 of office supplies on credit 20 The compony paid $2,660 cash for the office equipment purchased on December 8 24 The company blled a client $900 for electrical work compieted; the balance is due in 30 days 28 The company recelved $5,100 cash for the work completed on December 15 29 The compony paid the assistant\'s salary of $1.300 cash for this month. 30 The company paid $540 cash for this month\'s utlity bill 31 the company paid $910 cash in dividends to the owner isole sharehoiden 50.00 points 3-a. Prepare an income statement for the current month SONY ELECTRIC Income Statenient For Month Ended December 31

Solution

Sony Electric Income Statement for Month Ended December 31 Revenues Electrical work Services         1,700 Electrical work Services         5,100 Electrical work Services            900         7,700 Expenses Office Rent         1,300 Office Supplies            900 Office Supplies            310 Salary         1,300 Utility Bill            540 Total Expenses         4,350 Net income         3,350 Sony Electric Statement of Retained Earnings for Month Ended December 31 Retained earnings, December 1 0 Net income         3,350 Total Retained earnings         3,350 Less: Dividend paid            910 Retained Earnings, December 31         2,440 Sony Electric Statement of Cash flows for Month Ended December 31 Cash flows from operating activities Electrical Work services         1,700 Electrical Work services         5,100 Office supplies           -900 Rent       -1,300 Salary       -1,300 Utility Bill           -540 Net cash inflows from Operating activities         2,760 Cash flow from investing activities Purchase of Electrical equipment       -6,500 Purchase of Office equipment       -2,660 Net cash out flows from investing activities       -9,160 Cash flow from financing activities Common stock      66,000 Dividends paid           -910 Net cash inflows from financing activities      65,090 Cash balance , Dec 1 0 Cash balance , Dec 31      58,690 Sony Electric Balance Sheet December 31 Assets Liabilities Electrical Equipment        14,700 Notes Payable         8,200 Office Equipment           2,660 Accouns Payable            310 Accounts Receivable              900 Equity Cash Balance        58,690 Common stock      66,000 Retained Earnings         2,440 Total Assets        76,950 Total Liabilities and Equity      76,950