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Transactions and Financial Statements

James Nesbitt established Up-Date Computer Services on August 1, 20Y4. The effect of each transaction and the balances after each transaction for August are shown below in the integrated financial statement framework.

Statement of Cash Flows	Balance Sheet
	Assets			=	Liabilities	+	Stockholders' Equity
	Cash	+	Land	=	Notes Payable	+	Common Stock	+	Retained Earnings
a. Issued common stock	25,000						25,000
b. Fees earned	27,000								27,000
Balances	52,000						25,000		27,000
c. Rent expense	(2,500)								(2,500)
Balances	49,500						25,000		24,500
d. Issued notes payable	10,000				10,000
Balances	59,500				10,000		25,000		24,500
e. Purchased land	(40,000)		40,000
Balances	19,500		40,000		10,000		25,000		24,500
f. Paid expenses	(1,900)								(1,900)
Balances	17,600		40,000		10,000		25,000		22,600
g. Paid salary expense	(4,600)								(4,600)
Balances	13,000		40,000		10,000		25,000		18,000
h. Paid dividends	(3,000)								(3,000)
Balances, Aug. 31	10,000		40,000		10,000		25,000		15,000
Statement of Cash Flows							Income Statement
a. Financing	25,000						b. Fees earned		27,000
b. Operating	27,000						c. Rent expense		(2,500)
c. Operating	(2,500)						f. Auto expense		(1,200)
d. Financing	10,000						f. Misc. expense		(700)
e. Investing	(40,000)						g. Salary expense		(4,600)
f. Operating	(1,900)						Net income		18,000
g. Operating	(4,600)
h. Financing	(3,000)
Increase in cash	10,000

Instructions:

1. Prepare an income statement for the month ended August 31, 20Y4.

Up-Date Computer Services
Income Statement
For the Month Ended August 31, 20Y4
		$
Operating expenses:
	$
Total operating expenses
Net income		$

2. Prepare a statement of stockholders equity for the month ended August 31, 20Y4. If your answer is zero enter "0".

Up-Date Computer Services
Statement of Stockholders' Equity
For the Month Ended August 31, 20Y4
	Common Stock	Retained Earnings	Total
Balances, August 1, 20Y4	$	$	$
			$
Balances, August 31, 20Y4	$	$	$

3. Prepare a balance sheet as of August 31, 20Y4.

Up-Date Computer Services
Balance Sheet
August 31, 20Y4
Assets
		$
Total assets		$
Liabilities
		$
Stockholders' Equity
	$
Total stockholders' equity
Total liabilities and stockholders' equity		$

4. Prepare a statement of cash flows for the month ended August 31, 20Y4. Use the minus sign to indicate cash out flows, decreases in cash, or cash payments. If your answer is zero enter "0".

Up-Date Computer Services
Statement of Cash Flows
For the Month Ended August 31, 20Y4
Cash flows from operating activities:
	$
		$
Cash flows from investing activities:
Cash flows from financing activities:
	$
		$
		$

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