Question: Alpine Realty, Inc., organized July 1, 20Y8,
Alpine Realty, Inc., organized July 1, 20Y8, is operated by Angela Grifï¬n. How many errors can you ï¬nd in the following ï¬nancial statements for Alpine Realty, Inc., prepared after its ï¬rst month of operations?
Transcribed Image Text:
ALPINE REALTY, INC. Income Statement July 31, 20Y8 Sales commissions.... Operating expenses: Office salaries expense. $60,000 $20,000 Rent expense ... Automobile expense. Dividends....... Miscellaneous expense.. 6,000 3,500 2,000 1,500 Total operating expenses. (33,000) $27,000 Net income ..... ANGELA GRIFFIN Statement of Stockholders' Equity July 31, 20Y7 Net income for the month..... $27,000 $27,000 Retained earnings, July 31, 20Y7 . Balance Sheet For the Month Ended July 31, 20Y7 Assets Cash ..... $32,000 Notes payable 20,000 Total assets .... $52,000 Liabilities Land..... $30,000 Stockholders' Equity Common stock...... $15,000 Retained earnings... 27,000 Total stockholders'equity 42,000 Total liabilities and stockholders' equity.... $72,000 ALPINE REALTY, INC. Statement of Cash Flows July 31, 20Y8 Cash fl ws from operating activities: Cash receipts from sales commissions.... $ 60,000 Cash fl ws used for investing activities: Cash payments for land.... Cash fl ws from financing a tivities: Cash receipts from retained earnings... Net increase in cash during July...... Cash as of July 1, 20Y8.... Cash as of July 31, 20Y8... (30,000) 27,000 $ 57,000 $ 57,000
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