ransactions; 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, $18,480; Accounts Receivable, $37,840; Supplies, $3,520; Land, $44,000; Accounts payable, $15,840. Business transactions during November are summarized as follows: Beverly Zahn invested additional cash in the business with a deposit of $33,000 in the business bank account. Purchased land adjacent to land currently owned by Bev’s Dry Cleaners to use in the future as a parking lot, paying cash of $16,600. Paid rent for the month, $12,140. Charged customers for dry cleaning revenue on account, $34,410. Paid creditors on account, $14,170. Purchased supplies on account, $6,070. Received cash from cash customers for dry cleaning revenue, $32,380. Received cash from customers on account, $40,480. Received monthly invoice for dry cleaning expense for November (to be paid on December 10), $16,190. Paid the following: wages expense, $8,910; truck expense, $3,240; utilities expense, $3,440; miscellaneous expense, $1,540. Determined that the cost of supplies on hand was $8,170; therefore, the cost of supplies used during the month was $1,420. Withdrew $9,300 cash for personal use. Required: 1. Determine the amount of Beverly Zahn’s capital as of November 1. = $

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter16: Accounting Periods And Methods

Section: Chapter Questions

Problem 33P

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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, $18,480; Accounts Receivable, $37,840; Supplies, $3,520; Land, $44,000; Accounts payable, $15,840. Business transactions during November are summarized as follows:

Beverly Zahn invested additional cash in the business with a deposit of $33,000 in the business bank account.
Purchased land adjacent to land currently owned by Bev’s Dry Cleaners to use in the future as a parking lot, paying cash of $16,600.
Paid rent for the month, $12,140.
Charged customers for dry cleaning revenue on account, $34,410.
Paid creditors on account, $14,170.
Purchased supplies on account, $6,070.
Received cash from cash customers for dry cleaning revenue, $32,380.
Received cash from customers on account, $40,480.
Received monthly invoice for dry cleaning expense for November (to be paid on December 10), $16,190.
Paid the following: wages expense, $8,910; truck expense, $3,240; utilities expense, $3,440; miscellaneous expense, $1,540.
Determined that the cost of supplies on hand was $8,170; therefore, the cost of supplies used during the month was $1,420.
Withdrew $9,300 cash for personal use.

Required:

1. Determine the amount of Beverly Zahn’s capital as of November 1.
= $

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