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 at wholesale rates. The assets, liabilities, and common stock of the business on July 1, 20Y4, are as follows: Cash, $45,000; Accounts Receivable, $93,000; Supplies, $7,000; Land, $75,000; Accounts Payable, $40,000; Common Stock, $60,000. Business transactions during July are summarized as follows: a. Joel Palk invested additional cash in exchange for common stock with a deposit of $35,000 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 customers for dry cleaning revenue, $32,125. d. Paid rent for the month, $6,000. e. Purchased supplies on account, $2,500. f. Paid creditors on account, $22,800. g. Charged customers for dry cleaning revenue on account, $84,750. h. Received monthly invoice for dry cleaning expense for July (to be paid on August 10), $29,500. i. Paid the following: wages expense, $7,500; truck expense, $2,500; utilities expense, $1,300; miscellaneous expense, $2,700. j. Received cash from customers on account, $88,000. k. Determined that the cost of supplies on hand was $5,900; therefore, the cost of supplies used during the month was $3,600. I. Paid dividends, $12,000. Required: 1. Determine the amount of retained earnings as of July 1, 2014. 2. The assets, liabilities, and stockholders' 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. In each transaction row (rows indicated by a letter), you must indicate the math sign (+ or -) in columns effected by the transaction. You will not need to enter math signs in the balance rows (rows indicated by Bal.). Entries of 0 (zero) are not required and will be cleared if entered. Statement of Stockholders' Equity (Label) Retained Common Stock Total Earnings Labels Cash flows from financing activities Cash flows from investing activities Cash flows from operating activities Cash flows used for financing activities Cash flows used for investing activities Cash flows used for operating activities Expenses For the Month Ended July 31, 20Y4 July 31, 20Y4 Amount Descriptions Balances, July 1, 20Y4 Balances, July 31, 20Y4 Cash received from customers Cash paid for expenses and to creditors Cash paid for acquisition of land. Cash received from issuing common stock Cash paid for dividends Cash balance, July 1, 20Y4 Cash balance, July 31, 20Y4 Dividends Issued common stock Net income Net loss Net cash flows from operating activities Net cash flows used for operating activities Net cash flows from investing activities Net cash flows used for investing activities Net cash flows from financing activities Net cash flows used for financing activities Net increase in cash Net decrease in cash Dividends Issued common stock Net income Net loss Net cash flows from operating activities Net cash flows used for operating activities Net cash flows from investing activities Net cash flows used for investing activities Net cash flows from financing activities Net cash flows used for financing activities Net increase in cash Net decrease in cash Total assets Total expenses Total stockholders' equity Total liabilities and stockholders' equity