Financial Accounting: PR1-5A D’Lite Dry Cleaners is owned and operated by Joel Palk

Financial Accounting 
PR1-5A Transactions; financial statements 
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 and the liabilities of the business on July 1, 2016, 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. 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.
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