Use the facts in Exercise 1-12 to prepare a July 31 balance sheet for Academic Learning Services, similar to Exhibit 1.10.

Analysis Component: Identify how much of the assets held by Academic Learning Services are financed by debt.

Exercise 1-12

On July 1, 2020, Academic Learning Services entered its second month of operations. On July 31, 2020, Breanne Allarie, the owner, finalized the company?s records that showed the following items. Use this information to prepare a July income statement similar to Exhibit 1.8.

Exhibit 1.10

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Accounts payable. Accounts receivable. Owner's investments during July 2020 Owner's withdrawals .................... $2,500 4,000 3,600 4,200 3,800 15,400 4,500 $3,200 3,000 2,080 Cash. Supplies. Textbook rental revenue. Tutoring revenue. Computer equipment. Furniture . Breanne Allarie, capital, June 30, 2020*. 500 6,200 Tutors' wages expense. 1,740 Office rent expense Utilities expense 880 EXHIBIT 1.8 Income Statement for Organico Organico Income Statement For Month Ended March 31, 2020 Revenues: Food services revenue. $3,800 Teaching revenue. Total revenues. 300 $4,100 Operating expenses: Rent expense. Salarles expense. $1,000 700 Total operating expenses. 1,700 $2,400- Profit. EXHIBIT 1.9 Statement of Changes in Equity for Organico Organico Statement of Changes In Equity For Month Ended March 31, 2020 Halley Walker, capital, March 1. -0- Investments by owner. $10,000 Profit. 2,400 12,400 Total $12,400 Less: Withdrawals by owner Halley Walker, capiltal, March 31. 600 $11,800 EXHIBIT 1.10 Balance Sheet for Organico Organico Balance Sheet March 31, 2020 Assets Llabilitles $ 200 $8,400 Accounts payable. 3,600 Notes payable. Total labilities. Equity Halley Walker, capltal. $18.000 Total labilitiles and equity. Cash. Supplies. Equipment 6,000 6,000 $ 6,200 11,800 Total assets $18,000 EXHIBIT 1.11 Statement of Cash Flows for Organico Organico Statement of Cash Flows For Month Ended March 31, 2020 Cash flows from operating activitles $ 4,100 (3,400) (1,000) (700) Cash recelved from clients. Cash pald for supplies Cash pald for rent. Cash pald to employee Net cash used by operating activitles Cash flows from Investing activities. Cash flows from financing activitiles Investment by owner Withdrawal by owner $(1,000) -0- $10,000 (600) Net cash provided by financing activities. Net Increase In cash. 9,400 $8,400 Cash balance, March 1 -0- Cash balance, March 31. $8,400 The arrows ara provided for education purposes only to omphasize the link batwoen statements. %24