Question

the following t he Assets - L ities + Owners Equity Maria Maria Account Adam Adams Rent Salaries Auto Supplies Misc Cash + Supplies - Payable + Capital - Drawing + Commissions - Expense - Expense - Expense - Expense - Expense 2. Prepare an income statement for April, a statement of owner's equity for April, and a balance sheet as of April 30. 3. Net income $40,150 PR 1-5B Transactions; financial statements OB. 4,5 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 at wholesale rates. The assets and the liabilities of the business on November 1, 2016, are as follows: Cash, $39.000; Accounts Receivable. $80.000 Supplies $11.000, Land, $50,000; Accounts Payable, $31.500. Business transac. tions during November are summarized as follows: a. Beverly Zahn invested additional cash in the business with a deposit of $21,000 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 $35,000. c. Paid rent for the month, $4,000. d. Charged customers for dry cleaning revenue on account, $72,000. e. Paid creditors on account, $20,000. E. Purchased supplies on account, $8,000. & Received cash from cash customers for dry cleaning revenue, $38,000. h. Received cash from customers on account, $77,000. i Received monthly invoice for dry cleaning expense for November (to be paid on De- cember 10), $29,450. Paid the following wages expense, $24.000, truck expense, $2,100; utilities expense $1,800; miscellaneous expense, $1,300. Determined that the cost of supplies on hand was $11.800, therefore, the cost of sup plies used during the month was $7.200. L Withdrew $5,000 for personal use. Instructions 1. Determine the amount of Beverly Zan's capital as of November 1 2. State the sets, liabilities, and owner's equity as of November 1 in equation form similar to that shown in this chapter. In tabular form below the equation, indicate increases and decreases resulting from cach transaction and the new balances after each transaction

Answer 1

Req1 Beverly Zahn, Capital as of November 1 Cash Accounts Receivable Supplies Land Total Assets Accounts Payable Beverly Zahn, Capital $ 39,000 $ 80,000 $ 11,000 $ 50,000 $ 180,000 $ (31,500) $ 148,500

Bev's Dry Cleaners Assets = Liabilties + Owners Equity Accounts Accounts Beverly Zahn, Beverly Zahn, Service Rent Dry Cleaning Wages Truck Utilities Supplies Misc Date Cash Receivable Supplies Land = Payable + Capital - Drawings + Revenue - Expense Expense Expense Expense Expense Expense Expense Beg Bal. $ 39,000 $ 80,000 $11,000 $ 50,000 = $ 31,500 + $ 148,500 - a $ 21,000 + $ 21,000 Bal $ 60,000 $80,000 $11,000 $50,000 = $ 31,500 + $ 169,500 - $ - + $ - - $ - $ - $ - $ - $ - $ - $ . $ (35,000) $ 35,000 = Bal $ 25,000 $ 80,000 $11,000 $ 85,000 = $ 31,500 + $ 169,500 - $ - + $ - - $ - $ - $ - $ - $ - $ - $ - $ (4,000) - $ 4,000 Bal $ 21,000 $80,000 $11,000 $ 85,000 = $ 31,500 + $ 169,500 - $ - + $ - - $ 4,000 $ - $ - $ - $ - $ - $ - $ 72,000 + $ 72,000 Bal $ 21,000 $ 152,000 $11,000 $ 85,000 = $ 31,500 + $ 169,500 - $ - + $ 72,000 - $ 4,000 $ - $ - $ - $ - $ - $ - $ (20,000) = $ (20,000) + Bal $ 1,000 $152,000 $11,000 $ 85,000 = $ 11,500 + $ 169,500 - $ - + $ 72,000 - $4,000 $ - $ - $ - $ - $ - $ - $ 8,000 = $ 8,000 + Bal $ 1,000 $152,000 $19,000 $ 85,000 = $ 19,500 + $ 169,500 - $ - + $ 72,000 - $ 4,000 $ - $ - $ - $ - $ - $ - g $ 38,000 + $ 38,000 Bal $ 39,000 $152,000 $19,000 $ 85,000 = $ 19,500 + $ 169,500 - $ - + $110,000 - $ 4,000 $ - $ - $ - $ - $ - $ - $ 77,000 $ (77,000) Bal $116,000 $ 75,000 $19,000 $ 85,000 = $ 19,500 + $ 169,500 - $ - + $110,000 - $ 4,000 $ - $ - $ - $ - $ - $ - = $ 29,450 + $ 29,450 Bal $116,000 $ 75,000 $19,000 $ 85,000 = $ 48,950 + $ 169,500 - $ - + $ 110,000 - $ 4,000 $ 29,450 $ - $ - $ - $ - $ - $ (29,200) $ 24,000 $2,100 $ 1,800 $ 1,300 Bal $ 86,800 $ 75,000 $19,000 $ 85,000 = $ 48,950 + $ 169,500 - $ - + $110,000 - $ 4,000 $ 29,450 $24,000 $2,100 $ 1,800 $ - $ 1,300 $ (7,200) $ 7,200 Bal $ 86,800 $ 75,000 $11,800 $ 85,000 = $ 48,950 + $ 169,500 - $ - + $110,000 - $ 4,000 $ 29,450 $24,000 $2,100 $ 1,800 $ 7,200 $ 1,300 $ (5,000) $ 5,000 + End Bal. $ 81,800 $ 75,000 $11,800 $ 85,000 = $ 48,950 + $ 169,500 - $ 5,000 + $ 110,000 - $4,000 $ 29,450 $24,000 $2,100 $1,800 $ 7,200 $1,300