National University College., Rio Grandes Campus Business Adminstration and Technology Department Problem 3 Magic Dry Cleaners is owned and operated by Gail Fox. Currently, a building and equipment are being rented, pending expansion to new facilities. The actual work of dry cleanings is done by another company at wholesale rates. The assets and the liabilities of the business on July 1of the current year are as follows: Cash, $7,250; Accounts Receivable, $22,000; Supplies, $2,200; Land, $50,000; Accounts Payable, $6,800; Business Transactions during July are summarized as follows: a. Received cash from cash customers for dry cleaning sales, $17,750. b. Paid rent for the month, $2,000. c. Purchased supplies on account, $1,650. d. Paid creditors on acoount, $6,000. e. Charged customers for dry cleaning sales on accoint, 6,920. f. Received monthly invoice for dry cleaning expense for July (to be paid on August 10), $9,700. g. Paid the following: wages expense, $2,400; truck expense, $1,580; utilities expense, $960; miscellaneous expense, $630. h. Received cash from customers on accounts,$12,100. i. Determined that the cost of supplies on hand was $2,500, therefore, the cost of supplies used during the month was $1,350. nstructions 1 Determine the amount of Gail Fox's capital as July of the current year. Liabilitie Owner's Assets Capital Ladil Accaunt Accountr Fox's Trans. Cash Supplies Land Rocoivablo Payable 2 State the assets, liabilties and owner's equity as of July 1 in equation form similar to that shown in this chapter. In the tabular form below the equation, indicate increasesand decreases resulting from each transaction and the new balances after each transaction. Explain the nature of each increase and decrease in owner's equity by an appropiate notation at the amount. Owner's Capital Liabilitie Assets Account Accountr Gail Fax's Tranr. Carh Rocoivable Supplier Land Payable Capital 3 Prepare an income statament for July, a statement of owner's equity for July, and a balance sheet as July 3