184 Chapter 4 Accounting Information Systems
Hearts, P.C.
Post–Closing Trial Balance
April 30, 2007Debit Credit
Balances Balances
Cash 2,361
Accounts Receivable 8,095
Supplies 185
Prepaid Insurance 400
Equipment 22,995
Accumulated Depreciation 3,180
Accounts Payable 810
Salary Payable 300
Capital Stock 10,000
Retained Earnings 19,746
34,036 34,0369.
Hearts, P.C.
Statement of Cash Flows
For the Month Ended April 30, 2007Cash flows from operating activities:
Cash received from customers $ 4,870 (a)
Deduct cash payments for operating expenses 4,132 (b)
Net cash flows from operating activities $ 738Net cash flows used for investing activities:
Purchase of equipment (1,250)
Net cash flows used for financing activities:
Payment of dividends (1,250)
Net decrease in cash $(1,762)
April 1, 2007, cash balance 4,123
April 30, 2007, cash balance $ 2,361Computational Notes:
(a) $3,150 + $1,720
(b) Salary $1,725
Rent 800
Laboratory ($545$200) 745
Utilities 360
Insurance 370
Miscellaneous 132
Total cash payments for expenses $4,132