D'Lite 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 for a fee. The assets and the liabilities of the business on July 1, 2019, are as follows: Cash, $46,000; Accounts Receivable, $91,000; Supplies, $6,300; Land, $70,000; Accounts Payable, $35,000. Business transactions during July are summarized as follows: A. Joel Palk invested additional cash in the business with a deposit of $37,000 in the business bank account. B. Paid $50,000 for the purchase of land adjacent to land currently owned by D'Lite Dry Cleaners as a future building site. C. Received cash from cash customers for dry cleaning revenue, $33,125. D. Paid rent for the month, $5,800. E. Purchased supplies on account, $3,000. F. Paid creditors on account, $21,600. G. Charged customers for dry cleaning revenue on account, $86,750. H. Received monthly invoice for dry cleaning expense for July (to be paid on August 10), $28,500. 1. Paid the following: wages expense, $7,400; truck expense, $2,800; utilities expense, $1,800; miscellaneous expense, $2,700. J. Received cash from customers on account, $85,000. K. Determined that the cost of supplies on hand was $5,100; therefore, the cost of supplies used during the month was $4,200. L. Withdrew $14,000 cash for personal use. Required: 1. Determine the amount of Joel Palk's capital as of July 1 of the current year. 2. The assets, liabilities, and owner's equity as of July 1 are stated in equation form similar to that shown in this chapter. In tabular form below the equation, indicate increases and decreases resulting from each transaction and the new balances after each transaction. 3. Prepare an income statement for July, a statement of owner's equity for July, and a balance sheet as of July 31.* 4. Prepare a statement of cash flows for July.* *Refer to the Accounts in the accounting equation grid and to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. If a net loss has been incurred, enter that amount as a negative number using a minus sign. Enter amounts that represent cash outflows as a negative number using a minus sign. You will not need to enter colons (:) on the statements. Labels Cash flows from financing activities Cash flows from operating activities Cash flows used for investing activities Expenses For the Month Ended July 31, 2019 July 31, 2019 Amount Descriptions Additional investment during July Cash balance, July 1, 2019 Cash balance, July 31, 2019 Cash payments for expenses and payments to creditors Cash receipt of owner's investment Cash receipts from customers Cash withdrawal by owner Decrease in owner's equity Dry cleaning revenue Dry cleaning expense Wages expense Rent expense Supplies expense Truck expense Utilities expense Miscellaneous expense Cash Accounts Receivable Supplies Land Accounts payable Joel Palk, capital Increase in owner's equity Joel Palk, capital, July 1, 2019 Joel Palk, capital, July 31, 2019 Withdrawals Net cash flow from financing activities Net cash flow from investing activities Net cash flow from operating activities Net cash flow used for financing activities Net cash flow used for investing activities Net cash flow used for operating activities Net decrease in cash and July 31, 2019, cash balance Net decrease in cash during July Net income Net income for July Net increase in cash and July 31, 2019, cash balance Net increase in cash during July Net loss Net loss for July Plus withdrawals Cash payment for purchase of land Total assets Total expenses Total liabilities and owner's equity