Transactions; Financial Statements Bev's Dry Cleaners is owned and operated by Beverly Zahn. A bullding 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: 1. Determine the amount of Beverly Zahn's capital as of November 1. 2. Use the attached spreadsheet to complete part 2. Click on the Spreadsheet icon above to open and save the Excel file to your computer. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem.
Transactions; Financial Statements Bev's Dry Cleaners is owned and operated by Beverly Zahn. A bullding 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: 1. Determine the amount of Beverly Zahn's capital as of November 1. 2. Use the attached spreadsheet to complete part 2. Click on the Spreadsheet icon above to open and save the Excel file to your computer. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem.
Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 46P: Blue Company, an architectural firm, has a bookkeeper who maintains a cash receipts and...
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Still apart of number 3. Statement of owner equity.
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. Recelved 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:
1. Determine the amount of Beverly Zahn's capital as of November 1.
2. Use the attached spreadsheet to complete part 2. Click on the Spreadsheet icon above to open and save the Excel file to your computer. Your input into
the spreadsheet will not be included in your grade in CengageNOW on this problem.
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Transcribed Image Text:each transaction.
3. Using the balances from the spreadsheet, prepare an income statement for November, a statement of owner's equity for November, and a balance she
as of November 30. Use
minus sign to indicate a net loss if applicable.
Income Statement
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