Using your answer to Problem 1-7B, prepare an income statement, a statement of changes in equity, and a balance sheet.
In problem 1-7

During July, the following occurred:
July 1 Cantu invested $20,000 cash in the business.
1 Rented office space and paid the month's rent of $1,000.
1 Purchased excavating equipment for $8,000 by paying $3,000 in cash and agreeing to pay the balance in 30 days.
6 Purchased office supplies by paying $1,000 cash.
8 Completed work for a customer and immediately collected $4,400 for doing the work.
10 Purchased $7,600 of office equipment on credit.
15 Completed work for a customer on credit in the amount of $4,800.
17 Purchased $3,840 of office supplies on credit.
23 Paid for the office equipment purchased on July 10.
25 Billed a customer $10,000 for completed work; the balance is due in 30 days.
28 Received $4,800 for the work completed on July 15.
31 Paid an assistant's salary of $4,500.
31 Paid the monthly utility bills of $1,700.
31 Cantu withdrew $2,400 cash from the business to pay personal expenses.
Analysis Component: Assets are financed by debt and equity. Owner investment is a component of equity. Therefore, owner investment helps to finance assets. Explain how/if owner investment helped to finance assets for Cantu Excavating for the month ended July 31, 2014.