Using this information, make a balance sheet: 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 liabilities of the business on July $1,2019,$ 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.

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, $$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.$

Withdrew $$12,000$ cash for personal use.

Instructions

$1.$ Determine the amount of Joel Palk's capital as of July $1$ of the current year.

$2.$ State the assets, liabilities, and owner's equity as of July $1$ in equation form similar to that shown in Exhibit $5.$ 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 $31.$

$4.($Optional$)$ Prepare a statement of cash flows for July.