Question : 189. Simpson Designers began operations April 1, 2011. The financial statements : 1239234

 

189. Simpson Designers began operations on April 1, 2011.  The financial statements for Simpson Designers are shown below for the month ended April 30, 2011 (the first month of operations).  Determine the missing amounts for letters (a) through (o). 

Simpson DesignersIncome StatementFor the Month Ended April 30, 2011

Fees earned

 

$27,000

Operating expenses:

 

 

   Wages expense

$5,250

 

   Rent expense

(a)

 

   Supplies expense

4,600

 

   Utilities expense

400

 

   Miscellaneous expense

  1,250

 

Total operating expenses

 

         (b)

Net income

 

$       (c)

 

 

 

 

Simpson DesignersRetained Earnings Statement For the Month Ended April 30, 2011

Retained Earnings, April 1, 2011

 

0

Net income for April

$        (d)

 

Less dividends

    6,000

 

Increase in retained earnings

 

          (e)

Retained Earnings, April 30, 2011

 

$        (f)

 

 

 

 

Simpson DesignersBalance SheetApril 30, 2011

Assets

 

 

Liabilities

 

Cash

$       (g)

 

Accounts payable

$       (i)

Supplies

8,100

 

Stockholders’ Equity

 

Land

        (h)

 

Capital stock                       $   (j)

 

Total assets

$55,900

 

Retained earnings                    (k)   

 

 

 

 

Total stockholders’ equity

             38,100

 

 

 

Total liabilities and stockholders’ equity

$       (l)

 

 

 

 

 

 

Simpson DesignersStatement of Cash FlowsFor the Month Ended April 30, 2011

Cash flows from operating activities:

 

 

    Cash received from customers

$23,000

 

   Deduct cash payments for expenses and payments to   creditors

    4,200

 

   Net cash flow from operating activities

 

$   18,800

Cash flows from investing activities:

 

 

    Cash payments for acquisition of land

 

(17,000)

Cash flows from financing activities:

 

 

    Cash received from sale of capital stock

$      (m)

 

    Deduct cash dividends

        (n)

 

    Net cash flow from financing activities

 

           (o)

Net cash flow and April 30, 2011, cash balance

 

$         (p)

 

 

 

Place your answers in the space provided below.  Hint: Use the interrelationships among the financial statements to solve this problem. 

(a)

___________

(b)

___________

(c)

___________

(d)

___________

(e)

___________

(f)

___________

(g)

___________

(h)

___________

(i)

___________

(j)

___________

(k)

___________

(l)

___________

(m)

___________

(n)

___________

(o)

___________

(p)

___________