31% D Tue 8:45 PM ao a ereader.chegg.com 0 lege Physics I-Section:02 Chegg: Fina

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31% D Tue 8:45 PM ao a ereader.chegg.com 0 lege Physics I-Section:02 Chegg: Financial & Managerial Acc... Physics: Principles wit.. Chapter 1 Introduction to Accounting and PR 1-5A Transactions; financial statements income: D'Lite Dry Cleaners is owned and operated by Joel Palk. A building and equipment are currenty $63,775 being rented, pending expansion another company at wholesale rates. The assets, liabilities, and common stock of the business on July 1, 2018, 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 dur- ing 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 to new facilities. The actual work of dry cleaning is done by TEMPIATE 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. Received cash from customers for dry cleaning revenue, S32125. 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 S84750 H. Received monthly invoice for dry cleaning expense for July to be paid on August 10 $29,500 L Paid the following wages expense. $7,500 truck expense $2.500, utilibes expense 51 300 miscellaneous J Received cash from customers on account, $88,000 expense, $2,700 K. Determined that the cost of supphes on hand was $,900 therefore, the cost of supplies used during the month was $3.600 L Paid dividends, $ 12,000. Instructions 1. Determine the amount of retained earnings as of July 1, 2018. 2 State the assets, liabilities, and stockholders equity as of July 1 in equation 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 Prepare an income statement for July, a retained eamings statement for July, and a balance sheet as of July 31. 3. 4 coptiona) Prepare a statement of cash flows for July

Explanation / Answer

1)

Retained Earning = Assets - Liabilities

Assets as at 1 July 2018 = Cash + Accounts Receivable + Land + Supplies

                                      = 45000+93000+75000+7000

= 220,000

Liabilities as at 1 July 2018 = Capital Stock + accounts Payable

                                            = 60,000 + 40,000

                                            = 100, 000

Therefore retained earnings as at 1 july 2018 = 220,000 - 100,000

                                                                        = $ 120,000

2)

Total Assets= 220,000.00

Account Payble= 40000.00

Owner's Equity= Total Assets- Total Liabilities

Owner Equity= 220000-40000= 180000 USD

Balance Sheet as at 31 july 2018

Balance Sheet as at 1 july 2018 Liabilities Amount Assets Amount Owner's Equity $180,000.00 Cash $45,000.00 Account Receivables $93,000.00 Supplies Stock $7,000.00 Account Payble $40,000.00 Land $75,000.00 $220,000.00 $220,000.00

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