Bev's Dry Cleaners is owned and operated by Beverly Zahn. A building and equipment are currently being rented, pending expansion to new facilities. The actual work of dry cleaning is done by another company for a fee. The assets and the liabilities of the business on November 1, 2019, are as follows: Cash, $16,380; Accounts Receivable, $33,540; Supplies, $3,120; Land, $39,000; Accounts payable, $14,040. Business transactions during November are summarized as follows: a. Beverly Zahn invested additional cash in the business with a deposit of $31,000 in the business bank account. b. Purchased land adjacent to land currently owned by Bev's Dry Cleaners to use in the future as a parking lot, paying cash of $15,400. c. Paid rent for the month, $11,230. d. Charged customers for dry cleaning revenue on account, $31,820. e. Paid creditors on account, $13,100. f. Purchased supplies on account, $5,620. g. Received cash from cash customers for dry cleaning revenue, $29,950. h. Received cash from customers on account, $37,440. i. Received monthly invoice for dry cleaning expense for November (to be paid on December 10), $14,980. j. Paid the following: wages expense, $8,240; truck expense, $3,000; utilities expense, $3,180; miscellaneous expense, $1,420. k. Determined that the cost of supplies on hand was $7,430; therefore, the cost of supplies used during the month was $1,310. I. Withdrew $8,600 cash for personal use.
Bev's Dry Cleaners is owned and operated by Beverly Zahn. A building and equipment are currently being rented, pending expansion to new facilities. The actual work of dry cleaning is done by another company for a fee. The assets and the liabilities of the business on November 1, 2019, are as follows: Cash, $16,380; Accounts Receivable, $33,540; Supplies, $3,120; Land, $39,000; Accounts payable, $14,040. Business transactions during November are summarized as follows: a. Beverly Zahn invested additional cash in the business with a deposit of $31,000 in the business bank account. b. Purchased land adjacent to land currently owned by Bev's Dry Cleaners to use in the future as a parking lot, paying cash of $15,400. c. Paid rent for the month, $11,230. d. Charged customers for dry cleaning revenue on account, $31,820. e. Paid creditors on account, $13,100. f. Purchased supplies on account, $5,620. g. Received cash from cash customers for dry cleaning revenue, $29,950. h. Received cash from customers on account, $37,440. i. Received monthly invoice for dry cleaning expense for November (to be paid on December 10), $14,980. j. Paid the following: wages expense, $8,240; truck expense, $3,000; utilities expense, $3,180; miscellaneous expense, $1,420. k. Determined that the cost of supplies on hand was $7,430; therefore, the cost of supplies used during the month was $1,310. I. Withdrew $8,600 cash for personal use.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter1: Accounting And The Financial Statements
Section: Chapter Questions
Problem 46E: OBJECTIVE 6 Exercise 1-46 Income Statement ERS Inc. maintains and repairs office equipment. ERS had...
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Transcribed Image Text:Transactions; Financial Statements
Bev's Dry Cleaners is owned and operated by Beverly Zahn. A building and equipment are currently being rented, pending expansion to new facilities. The actual work of dry cleaning is done by another company for a fee. The assets and the
liabilities of the business on November 1, 2019, are as follows: Cash, $16,380; Accounts Receivable, $33,540; Supplies, $3,120; Land, $39,000; Accounts payable, $14,040. Business transactions during November are summarized as follows:
a. Beverly Zahn invested additional cash in the business with a deposit of $31,000 in the business bank account.
b. Purchased land adjacent to land currently owned by Bev's Dry Cleaners to use in the future as a parking lot, paying cash of $15,400.
c. Paid rent for the month, $11,230.
d. Charged customers for dry cleaning revenue on account, $31,820.
e. Paid creditors on account, $13,100.
f. Purchased supplies on account, $5,620.
g. Received cash from cash customers for dry cleaning revenue, $29,950.
h. Received cash from customers on account, $37,440.
i. Received monthly invoice for dry cleaning expense for November (to be paid on December 10), $14,980.
j. Paid the following: wages expense, $8,240; truck expense, $3,000; utilities expense, $3,180; miscellaneous expense, $1,420.
k. Determined that the cost of supplies on hand was $7,430; therefore, the cost of supplies used during the month was $1,310.
I. Withdrew $8,600 cash for personal use.
Required:
Transcribed Image Text:Learning Objective 4
statement of Owner's Equity
Learning Objective 5
Bev's Dry Cleaners v
Statement of Owner's Equity v
For the Month Ended November 30, 2019 v
1 Beverly Zahn, capital, November 1, 2019 v
78,000 V
2 Additional investment during November v
31,000
3 Net income for November v
18,410 V
4 withdrawals v
49,410 x
5 Increase in owner's equity v
40,810
6 Beverly Zahn, capital, November 30, 2019
$ 118,810
Balance sheet as of November 30:
When entering assets, enter them in order of liquidity.
Balance Sheet
Bev's Dry Cleaners v
Balance Sheet v
November 30, 2019 V
1 Owner's Equity X
Expenses X
Cash v
24
27,920 x
Accounts payable v
6,560 x
3
Accounts receivable v
19,600 x
4 Supplies v
7,430 V Expenses X
5
Land v
54,400 v Beverly Zahn, capital v
118,810 V
6 Total expenses X
$ 140,350
Total liabilities and owner's equity v
$ 140,350V
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