Transactions; finacial statements Bev's Dry Cleaners is owned and operated by Beverly Zahn.A buliding and equipment are currently being rented, pending expansion to new facilities . The actual work if dry cleaning is done by another company for a fee.The assets and liabilities of the business on November 1, 2019,are as follows: Cash,$39,000; Accounts Receivable,$80,000;Supplies,$11,000;Land,$50,000;Accounts payable,$31,500.Business transactions during Nvember are summarized as follows: a. Beverly Zahn invested additinal cash in the business with a deposit of $21,000 in the business bank account. b. Purchased land adjacent to land currently owned bt Bev's Dry Cleaners to use in the future as a parking lot,paying cash of $35,000. c. Paid rent for the month.$4,000. d.Charged customers for dry cleanung revenue on account $72,000. e. Paid crediotrs on account ,$20,000. f. Purhased supplies on account,$8,000 g.Received cash from customers for dry cleaning revenue,$38,000 h. Received cash from customers on account,$77,000. i. Recieved monthly invoice for dry cleaning expense for November (to be paid on December 10),$29,450. j. Paid the following:wages expenses,$14000;truck expenses,$2,100;utilities expenses,$1,80;miscellaneous expenses,$1,300. k. Determined that the cost of supplies on hand was $11,800;therefore,the cost of supplies used during the month was $7,200. l.withdraw $5,000.for personal use. Instructions 1. Determine tghe amount of beverly Zahn's capital as of November 1. 2.State the assets, liabilities , and owner's equity as of November 1 in equation form similar to that shown in Exhbit 5. In tabular form below the equation,indicate increases and decreases resulting from eacg transaction and the balance after each transactions. 3. Prepare an income statement for November,a satement of Owner's euity for Novmber, and a balance sheet as of November. 4. (Optipnal) prepare a statement of cash flows for November.
Transactions; finacial statements
Bev's Dry Cleaners is owned and operated by Beverly Zahn.A buliding and equipment are currently being rented, pending expansion to new facilities . The actual work if dry cleaning is done by another company for a fee.The assets and liabilities of the business on November 1, 2019,are as follows: Cash,$39,000; Accounts Receivable,$80,000;Supplies,$11,000;Land,$50,000;Accounts payable,$31,500.Business transactions during Nvember are summarized as follows:
a. Beverly Zahn invested additinal cash in the business with a deposit of $21,000 in the business bank account.
b. Purchased land adjacent to land currently owned bt Bev's Dry Cleaners to use in the future as a parking lot,paying cash of $35,000.
c. Paid rent for the month.$4,000.
d.Charged customers for dry cleanung revenue on account $72,000.
e. Paid crediotrs on account ,$20,000.
f. Purhased supplies on account,$8,000
g.Received cash from customers for dry cleaning revenue,$38,000
h. Received cash from customers on account,$77,000.
i. Recieved monthly invoice for dry cleaning expense for November (to be paid on December 10),$29,450.
j. Paid the following:wages expenses,$14000;truck expenses,$2,100;utilities expenses,$1,80;miscellaneous expenses,$1,300.
k. Determined that the cost of supplies on hand was $11,800;therefore,the cost of supplies used during the month was $7,200.
l.withdraw $5,000.for personal use.
Instructions
1. Determine tghe amount of beverly Zahn's capital as of November 1.
2.State the assets, liabilities , and owner's equity as of November 1 in equation form similar to that shown in Exhbit 5. In tabular form below the equation,indicate increases and decreases resulting from eacg transaction and the balance after each transactions.
3. Prepare an income statement for November,a satement of Owner's euity for Novmber, and a balance sheet as of November.
4. (Optipnal) prepare a statement of cash flows for November.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 3 images
