Question

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,

$14,280; Accounts Receivable, $29,240; Supplies, $2,720; Land, $34,000; Accounts payable, $12,240. Business transactions during November are

summarized as follows:

a. Beverly Zahn invested additional cash in the business with a deposit of $27,000 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 $13,400.

c. Paid rent for the month, $16,320.

d. Charged customers for dry cleaning revenue on account, $4,900.

e. Paid creditors on account, $2,280.

f. Purchased supplies on account, $12,080.

g. Received cash from cash customers for dry cleaning revenue, $26,110.

h. Received cash from customers on account, $32,640.

i. Received monthly invoice for dry cleaning expense for November (to be paid on December 10), $13,060.

j. Paid the following: wages expense, $7,180; truck expense, $2,610; utilities expense, $2,770; miscellaneous expense, $1,240.

k. Determined that the cost of supplies on hand was $1,800; therefore, the cost of supplies used during the month was $3,200.

l. Withdrew $7,500 cash for personal use; 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,

$14,280; Accounts Receivable, $29,240; Supplies, $2,720; Land, $34,000; Accounts payable, $12,240. Business transactions during November are

summarized as follows:

a. Beverly Zahn invested additional cash in the business with a deposit of $27,000 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 $13,400.

c. Paid rent for the month, $16,320.

d. Charged customers for dry cleaning revenue on account, $4,900.

e. Paid creditors on account, $2,280.

f. Purchased supplies on account, $12,080.

g. Received cash from cash customers for dry cleaning revenue, $26,110.

h. Received cash from customers on account, $32,640.

i. Received monthly invoice for dry cleaning expense for November (to be paid on December 10), $13,060.

j. Paid the following: wages expense, $7,180; truck expense, $2,610; utilities expense, $2,770; miscellaneous expense, $1,240.

k. Determined that the cost of supplies on hand was $1,800; therefore, the cost of supplies used during the month was $3,200.

l. Withdrew $7,500 cash for personal use; 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,

$14,280; Accounts Receivable, $29,240; Supplies, $2,720; Land, $34,000; Accounts payable, $12,240. Business transactions during November are

summarized as follows:

a. Beverly Zahn invested additional cash in the business with a deposit of $27,000 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 $13,400.

c. Paid rent for the month, $16,320.

d. Charged customers for dry cleaning revenue on account, $4,900.

e. Paid creditors on account, $2,280.

f. Purchased supplies on account, $12,080.

g. Received cash from cash customers for dry cleaning revenue, $26,110.

h. Received cash from customers on account, $32,640.

i. Received monthly invoice for dry cleaning expense for November (to be paid on December 10), $13,060.

j. Paid the following: wages expense, $7,180; truck expense, $2,610; utilities expense, $2,770; miscellaneous expense, $1,240.

k. Determined that the cost of supplies on hand was $1,800; therefore, the cost of supplies used during the month was $3,200.

l. Withdrew $7,500 cash for personal use

Answer 1