$40,000; Capital Stock, $60,000. Business transactions during July are summarized as follows:
- Joel Palk invested additional cash in exchange for capital stock with a deposit of $35,000 in the business bank account.
- 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 cash customers for dry cleaning revenue, $32,125.
- Paid rent for the month, $6,000.
- Purchased supplies on account, $2,500.
- Paid creditors on account, $22,800.
- Charged customers for dry cleaning revenue on account, $84,750.
- Received monthly invoice for dry cleaning expense for July (to be paid on August 10), $29,500.
- Paid the following: wages expense, $7,500; truck expense, $2,500; utilities expense, $1,300; miscellaneous expense, $2,700.
- Received cash from customers on account, $88,000.
- Determined that the cost of supplies on hand was $5,900; therefore, the cost of supplies used during the month was $3,600.
- Paid dividends, $12,000.