Rivera Roofing Company, owned by Reyna Rivera, began operations in July and completed these transactions during that first month of operations.

Required 

1. Create the following table similar to Exhibit 1.9. Use additions and subtractions within the table to show the dollar effects of each transaction on individual items of the accounting equation.

Data from Exhibit 1.9

Show new balances after each transaction.
2. Prepare the income statement and the statement of retained earnings for the month of July, and the balance sheet as of July 31.
3. Prepare the statement of cash flows for the month of July.
4. Assume that the $5,000 purchase of roofing equipment on July 3 was financed from an owner investment of another $5,000 cash in the business in exchange for more common stock (instead of the purchase conditions described in the transaction above). Compute the dollar effect of this change on the month end amounts for

(a) Total assets,

(b) Total liabilities, and

(c) Total equity.