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 deaning is done by another company for a fee. The assets and the liabilities of the business on November 1, 2019, are as follows: Cash, $15.270; Accounts Receivable, $37.410; Supplies, $3.480: Land, $43,500; Accounts payable, $15,660. Business transactions during November are Summarized as follows: Beverly Zahn invested additional cash in the business with a deposit of $35,000 in the business bank account. Purchased and adjacent to land currently owned by Bev's Dry Cleaners to use in the future as a parking lot, paying cash of $18,200. Pald rent for the month $22.190 d. Charged customers for dry cleaning revenue on account, $6,660, • Paid creditors on account 53.110. 1. Purchased supplies on account $16.420. 0. Received cash from cash customers for dry deaning revenue, $35,500. h. Received cash from customers on account. $44.370 1. Received monthly invoice for dry cleaning expense for November (to be paid on December 10), 517.750. J. Paid the following: wages expense, 59,760; truck expense. $3.550; utilities expense, $3,770; miscellaneous expense, $1,690. k. Determined that the cost of supplies on hand was 52.440; therefore, the cost of supplies used during the month was 54,150 L Withdrew $10,200 cash for personal use.

Answer 1

Bev's Dry Cleaners Liabilities = Accounts Payable + Unearned Revenue + 15660 + + 15660 + Owner's Equity Capital - Withdrawals 87000 36000 123000 + + + + + 15660 + + + + 15660 + Accounting Equation Assets Cash + Accounts Receivable + Supplies + Land Bal. 18270 37410 + 3480 43500 36000 + Bal. 54270 37410 3480 43500 -18200 18200 Bal. 36070 37410 3480 61700 -22190 Bal. 13880 37410 3480 + 61700 6660 Bal. 13880 44070 3480 61700 -3110 Bal. 10770 44070 + 3480 + 61700 + 16420 10770 44070 19900 + 61700 35500 Bal. 46270 44070 + 19900 + 61700 44370 + -44070 Bal. 90640 + 19900 + 61700 + + + + + 123000 -22190 100810 6660 107470 d. + + + + + + + 15660 -3110 12550 16420 28970 + + 107470 + Bal. + + + + + 107470 35500 142970 28970 + + + 300 300 O + + 28970 17750 46720 + + + Bal. 90640 19900 + + 61700 300 + + + 142970 -17750 125220 -18770 106450 -4150 102300 + + -18770 71870 + Bal. + + 61700 + 46720 300 + + k. 19900 -4150 15750 + + + Bal. 71870 + + + 61700 46720 300 + + + - 10200 61670 10200 10200 Bal. + 15750 + 61700 = 46720 + + 102300 - 300 139120 139120 0

Debit in $ Credit in $ 61670 15750 61700 46720 300 123000 Trial Balance For the period ending 30.11.2019 Particulars Cash Accounts Receivable Supplies Land Accounts Payable Unearned Revenue Beverly Zahn, Capital Beverly Zahn, Withdrawals Service Revenue Rent expense Dry Cleaning expense Wages Expense Truck Expense Utilities Expense Miscellaneous expense Supplies Expense Totals 10200 42160 22190 17750 9760 3550 3770 1690 4150 212180 212180 42160 Statement of Income For the period ending 30.11.2019 Service Revenue Less: Rent expense Dry Cleaning expense Wages Expense Truck Expense Utilities Expense Miscellaneous expense Supplies Expense Net Loss 22190 17750 9760 3550 3770 1690 415062860 -20700 Statement of Owner's Equity For the period ending 30.11.2019 Beverly Zahn, Capital Net Loss 123000 -20700 102300 -10200 92100 Beverly Zahn, Withdrawals

Amounts in $ Amounts in $ Balance sheet As at 30.11.2019 Assets Current Assets Cash Accounts Receivable Supplies Amounts in $ Amounts in $ Liabilities Current Liabilities 61670 Accounts Payable Unearned Revenue 15750 77420 46720 300 47020 Non Current Assets Land Total Assets Owner's Equity 61700 Beverly Zahn, Capital 139120 Total Liabilities & Equity 92100 139120