Question

Journal Entry for Kean Dry Cleaners is owned and operated by Wally Lowman

Journal entry of Kean Dry Cleaners is owned and operated by Wally Lowman

1 Wally Lowman invested additonal cash cash in buisness with a deposit of $ 28,000 in the business bank accout Kean Dry Cleaners is owned and operated by Wally Lowman A building and Equipment are currently being rented, pending for expansion to new facilities. The actual work of dry cleaning is done by another company at wholesale rates. The assets and liabilities of the business on March 1, 2015 are as follows: Cash 15,000.00 Accounts Receivable 31,000.00 Supplies 3,000.00 Land 36,000.00 Accounts Payables 13,000.00 Business transaction during the March are summarized as follows: 2 Paid $ 14,000 for the purchase of land as future building site 3 Received cash from customers for dry cleaning revenue, $ 17,000 4 Paid rent for the month, $ 5,000 5 Purchased supplies on account $ 2,500 6 Paid creditors on account $ 12, 800 7 Charged customer fo dry cleaning revenue on account $ 34,000 8 Received monthly invoice for dry cleaning expense for March, $ 13, 500 9 Paid the following: Wages Expense $ 7,500 Truck Expenses $ 2,500 Utilities Expenses $ 1,300 Miscellaneous Expenses $ 2,700 10 Received cash from customers account, $ 28,000 11 Determined that the cost of supplies on hand was $ 1,900; therefore, the cost supplies used during the month was $3,600 12 Withdrew $ 800 cash for personal use.

Answer 1

S.No Journal Entry for Kean Dry Cleaners is owned and operated by Wally Lowman Journal Entries Particulars Amount Amount 1 Cash 28000 Wally Lowman's Capital 28000 14000 2 Land Cash 14000 17000 3 Cash Dry Cleaning Revenue 17000 5000 4 Rent Expense Cash 5000 2500 5 Supplies Accounts payable 2500 12800 6 Accounts Payable Cash 12800 34000 7 Accounts Receivables Dry Cleaning Revenue 34000 13500 8 Dry Cleaning Expense Accounts Payable 13500 7500 9 Wages Expense Truck Expense Utilities Expense Miscellaneous Expense Cash 2500 1300 2700 14000 28000 10 Cash Accounts Receivables 28000 1900 11 Supplies Expense Supplies 1900 800 12 Drawings Cash 800

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