DLite Dry Cleaners is owned and operated by Joel Palk. A building and equipment are currently being rented, pending expansion to new facilities. The actual work of dry cleaning is done by another company at wholesale rates. The assets, liabilities, and common stock of the business on July 1, 2018, are as follows: Cash, $17,850; Accounts Receivable, $46,550; Supplies, $3,400; Land, $42,500; Accounts payable, $15,300; Common Stock, $10,000. Business transactions during July are summarized as follows:

1. Joel Palk invested additional cash in exchange for common stock with a deposit of $32,000 in the business bank account.
2. Paid $16,000 for the purchase of land adjacent to land currently owned by DLite Dry Cleaners as a future building site.
3. Received cash from customers for dry cleaning revenue, $19,550.
4. Paid rent for the month, $5,870.
5. Purchased supplies on account, $2,740.
6. Paid creditors on account, $14,470.
7. Charged customers for dry cleaning revenue on account, $39,100.
8. Received monthly invoice for dry cleaning expense for July (to be paid on August 10), $15,640.
9. Paid the following: wages expense, $8,600; truck expense, $3,130; utilities expense, $3,320; miscellaneous expense, $1,490.
10. Received cash from customers on account, $31,280.
11. Determined that the cost of supplies on hand was $2,150; therefore, the cost of supplies used during the month was $3,990.
12. Paid dividends, $9,000.

Required:

1. Determine the amount of retained earnings as of July 1, 2018.

01-5 algo 12e-1 Search Sheet Insert Page Layout Formulas Data Review View cut Share Home AutoSum AR Fill Clear 10 AA Wrap Text General Copy Paste Format u '-' -' -E-EE -Merge & Center' $ % , 4% conditional Format Cell insert Delete Format ,Sort & Formatting as Tabie Styles Assots Dry Dry Retained Eamings Dividends Revenue ExpenseExpense-ExpenseExpense ExpenseExpense Expense Wages Rent Truck CashReceivableSupples Land Payable StckE Bal. Bal. Bal. Pr. 1-5A+ 100% 3. Using the balances from the spreadsheet, prepare an income statement for July, a retained earnings statement for July, and a balance sheet as of July 31 Income Statement D'Lite Dry Cleaners Income Statement For the Month Ended July 31, 2018 10 Retained Earnings Statement D'Lite Dry Cleaners Retained Earnings Statement For the Month Ended July 31, 2018 2 4 Balance sheet as of July 31: When entering assets, enter them in order of liquidity. Balance Sheet D'Lite Dry Cleaners Balance Sheet July 31, 2018 4 4. Prepare a statement of cash flows for July. Use the minus sign to indicate cash outflows, decreases in cash, and cash payments. Statement of Cash Flows D'Lite Dry Cleaners Statement of Cash Flows For the Month Ended July 31, 2018 1 Cash flows from operating activities: 2 4 Net cash flows from operating activities 5 Cash flows used for investing activities: 7 Cash flows from financing activities: 9 10 Net cash flows from financing activities 11 Net Increase in cash 12 Cash balance, July 1, 2018 13 Cash balance, July 31, 2018 01-5 algo 12e-1 Search Sheet Insert Page Layout Formulas Data Review View cut Share Home AutoSum AR Fill Clear 10 AA Wrap Text General Copy Paste Format u '-' -' -E-EE -Merge & Center' $ % , 4% conditional Format Cell insert Delete Format ,Sort & Formatting as Tabie Styles Assots Dry Dry Retained Eamings Dividends Revenue ExpenseExpense-ExpenseExpense ExpenseExpense Expense Wages Rent Truck CashReceivableSupples Land Payable StckE Bal. Bal. Bal. Pr. 1-5A+ 100% 3. Using the balances from the spreadsheet, prepare an income statement for July, a retained earnings statement for July, and a balance sheet as of July 31 Income Statement D'Lite Dry Cleaners Income Statement For the Month Ended July 31, 2018 10 Retained Earnings Statement D'Lite Dry Cleaners Retained Earnings Statement For the Month Ended July 31, 2018 2 4 Balance sheet as of July 31: When entering assets, enter them in order of liquidity. Balance Sheet D'Lite Dry Cleaners Balance Sheet July 31, 2018 4 4. Prepare a statement of cash flows for July. Use the minus sign to indicate cash outflows, decreases in cash, and cash payments. Statement of Cash Flows D'Lite Dry Cleaners Statement of Cash Flows For the Month Ended July 31, 2018 1 Cash flows from operating activities: 2 4 Net cash flows from operating activities 5 Cash flows used for investing activities: 7 Cash flows from financing activities: 9 10 Net cash flows from financing activities 11 Net Increase in cash 12 Cash balance, July 1, 2018 13 Cash balance, July 31, 2018