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, liabilities, and common stock of the business on July 1, 20Y4, 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 during 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 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 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. I. Paid dividends, $12,000.
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, liabilities, and common stock of the business on July 1, 20Y4, 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 during 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 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 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. I. Paid dividends, $12,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Income Statement
Shaded cells have feedback.
3.a. Prepare an income statement for the month ended July 31, 20Y4. 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. You will not need to enter colons
(:) on the income statement.
D'Lite Dry Cleaners
Score: 20/95
Income Statement
For the Month Ended July 31, 20Y4
1 July 31, 20Y4
2 Expenses:
WAGES
$7,500.00
3
TRUCK
2,500.00
4
UTILITIES
1,300.00
5
MISCELLANCEOUSE
2,700.00
7
8
10
Transcribed Image Text: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 at wholesale rates. The assets, liabilities, and common stock of the business on July 1, 20Y4, 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 during 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 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 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.
I. Paid dividends, $12,000.
Required:
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