Labels and Amount Descriptions Starting Question Accounting Equation Grid Income Statement Statement of Owner's Equity Instructions 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 as business on July 1.2076, are as follows: Cash, $45.000; Accounts Receivable, $93,000; Supplies, $7,000; Land, $75.000; Accounts Payable. $40,000. Business transactions during July are summarized as follows: A. Joel Palk invested additional cash in the business with a deposit of $35,000 in the business bank account. 8. 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, $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). $28,500 1. Paid the following: wages expense 37.500; truck expense. $2,500; utilities expense. $1.300: miscellaneous expense. 52.700. 1. 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 $3.800 L. Withdrew $12.000 cash for personal use. Required: 11. Determine the amount of Joel Palk's capital as of July 1 2016 2. The assets. liabilities, and owner's eqully as of July 1 are stated in equation fom 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 21 Detsemaah 2 Labels Cash flows from (used for) financing activities Cash flows from (used for) operating activities Cash flows from (used for) investing activities Expenses For the Month Ended July 31, 2018 July 31, 2048 Amount Descriptions Additional investment during July Cash balance. July 1, 2016 Cash balance, July 31, 2016 Cash paid for expenses and to creditors Cash paid for purchase of land Cash received from owner as investment Cash received from customers Cash withdrawal by owner Decrease in owner's equity Increase in owner's equity Joel Palk, capital, July 1, 2016 Joel Palk, capital, July 31, 2016 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 Net income Net increase in cash Net loss Withdrawals Total assets Total expenses Total liabilities and owner's equity Accounting Equation Grid 2. The assets, liabilities, and owner's equity as of July fare 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 Assets = Liabilities + Joel Accounts Accounts Palk Cash + Receivable + Supplies + Land = Payable + Capital Bal. 3 Bal b. Bal. c Bal. d. Bal e Bal f Accounting Equation Grid w 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.). & Owner s Equity Joel Dry Dry Palk, Cleaning Cleaning Wages Rent Supplies Truck Drawing + Revenue - Expense Expense Expense - Expense -Expense Truck Utilities Miscellaneous - Expense - Expense - Expense Bal a. Bai b. Bla Bal. Bal B3 Accounting Equation Grid Bal d. Bal Bal. Bal 9 Bal h. Bal. Bal. 1 Bal Bal. 1 Balance Sheet 3. Prepare a balance sheet as of July 31, 20Y6. Be sure to complete the statement heading. Refer to the Accounts in the accounting equation grid and to the list of Labels and Amount Descriptions for the exact wording of the a for text entries. When entering assets, enter them in order of liquidity. D'Lite Dry Cleaners Balance Sheet (Label) Assets 2 3 - S Liabilities 3 Owner'sequity 4. Prepare a statement of cash flows for July. Be sure to complete the statement heading. Refer to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. You will not need to Deduct on the statement Enter amounts that represent cash outflows as negative numbers using a minus sign D'Lite Dry Cleaners Statement of Cash Flows (Label) 1 (Label) 2 3 4 5 Label) 6 7 Label) 19 30 ! 12 12