P2-1 Transactions and financial statements Les Stanley established an Insurance agency on July 1, 2045, and completed the following transactions during July: 1. Opened a business bank account in the name of Stanley Insurance Inc, with a deposit af $60,000 in exchange for common stock. b. Borrowed $100,000 by issuing a note payable. c. Received cash from fees earned, $30,000. d. Paid rent on office and equipment for the month, $5,000. e. Pald automobile expense for the month $2,500, and muscellaneous expense, $1,000. 1. Paid oflike salaries, $6,500. & Paid interest on the note payable, 3500 h Purchased land as a future building site, paying cash or $120.000 Instructions 1 Indicate the died of each transaction and the balances after each transaction, using the integraled financial statement lanework 2. Briefly explain why the storkholders investments and revenues ncreased sockhadees" equity, while dividends and expenses decreud stockholdes que 3. Prepare an income statement and statement of ockholders for lul 4. Prepare a balance sheet at of july 31, 2015 5. Per a atenent of cash flows toe luly