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, 20Y6, are as follows: Cash, $39,000; Accounts Receivable, $80,000; Supplies, $11,000; Land, $50,000; Accounts Payable, $31,500. Business transactions during November are summarized as follows:

1. Beverly Zahn invested additional cash in the business with a deposit of $21,000 in the business bank account.
2. 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.
3. Paid rent for the month, $4,000.
4. Charged customers for dry cleaning revenue on account, $72,000.
5. Paid creditors on account, $20,000.
6. Purchased supplies on account, $8,000.
7. Received cash from cash customers for dry cleaning revenue, $38,000.
8. Received cash from customers on account, $77,000.
9. Received monthly invoice for dry cleaning expense for November (to be paid on December 10), $29,450.
10. Paid the following: wages expense, $24,000; truck expense, $2,100; utilities expense, $1,800; miscellaneous expense, $1,300.
11. Determined that the cost of supplies on hand was $11,800; therefore, the cost of supplies used during the month was $7,200.
12. Withdrew $5,000 for personal use.

Required:

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

2. Use the attached spreadsheet to complete part 2. Click on the Spreadsheet icon above to open and save the Excel file to your computer. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem.

The assets, liabilities, and owner's equity as of November 1 are presented in equation form similar to that shown in this chapter. In tabular form below the equation, indicate increases and decreases resulting from each transaction and the new balances after each transaction.

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1. Insert the beginning balances into the accounting equation (Assets = Liabilities + Owner's Equity) to calculate the owner's equity.

2. Use Transactions (a) to (h) summarized on page 18 in the text to help you prepare the increases and decreases to the accounting equation in the tabular format. Recall that the effect of every transaction must modify the accounting equation, yet cause it to remain in balance overall. Assets are items owned by the company, while liabilities are debts owed to creditors, and owner's equity represents the rights of the owner.

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3. Using the balances from the spreadsheet, prepare an income statement for November, a statement of owner's equity for November, and a balance sheet as of November 30.

Income Statement
Bev's Dry CleanersFor the Month Ended November 30, 20Y6Income StatementNovember 30, 20Y6Bev's Dry Cleaners Bev's Dry CleanersFor the Month Ended November 30, 20Y6Income StatementNovember 30, 20Y6Income Statement Bev's Dry CleanersFor the Month Ended November 30, 20Y6Income StatementNovember 30, 20Y6For the Month Ended November 30, 20Y6
1	CashBeverly Zahn, capitalBeverly Zahn, drawingDry cleaning expenseDry cleaning revenueNet income		$
2	AssetsNet incomeExpensesLiabilities
3	Accounts payableAccounts receivableBeverly Zahn, capitalCashDry cleaning expenseDry cleaning revenue	$
4	Accounts payableBeverly Zahn, capitalCashDry cleaning revenueSuppliesWages expense
5	Accounts receivableCashDry cleaning revenueLandSuppliesSupplies expense
6	Accounts receivableCashBeverly Zahn, capitalBeverly Zahn, drawingDry cleaning revenueRent expense
7	Accounts payableAccounts receivableBeverly Zahn, drawingDry cleaning revenueLandTruck expense
8	Accounts receivableCashBeverly Zahn, capitalBeverly Zahn, drawingSuppliesUtilities expense
9	Accounts receivableBeverly Zahn, capitalCashDry cleaning revenueLandMiscellaneous expense
10	Net incomeNet lossTotal expensesTotal revenues
11	Net incomeNet lossTotal revenueTotal expenses		$

Statement of Owner's Equity
Bev's Dry CleanersFor the Month Ended November 30, 20Y6November 30, 20Y6Statement of Owner's Equity Bev's Dry CleanersFor the Month Ended November 30, 20Y6November 30, 20Y6Statement of Owner's Equity Bev's Dry CleanersFor the Month Ended November 30, 20Y6November 30, 20Y6Statement of Owner's Equity
1	Additional investment during NovemberBeverly Zahn, capital, November 1, 20Y6CashBeverly Zahn, capital, November 30, 20Y6Dry cleaning revenue			$
2	Accounts payableAdditional investment during NovemberCashBeverly Zahn, capital, November 1, 20Y6Beverly Zahn, capital, November 30, 20Y6	$
3	Accounts receivableCashDecrease in owner's equityNet income for NovemberNet loss for November
4	CashBeverly Zahn, capital, November 1, 20Y6Beverly Zahn, capital, November 30, 20Y6LandWithdrawals
5	Increase in owner's equityDecrease in owner's equity
6	Additional investment during NovemberCashBeverly Zahn, capital, November 1, 20Y6Beverly Zahn, capital, November 30, 20Y6Net income for November			$

Balance sheet as of November 30: When entering assets, enter them in order of liquidity.

Balance Sheet
Bev's Dry CleanersBalance SheetFor the Month Ended November 30, 20Y6November 30, 20Y6 Bev's Dry CleanersBalance SheetFor the Month Ended November 30, 20Y6November 30, 20Y6 Bev's Dry CleanersBalance SheetFor the Month Ended November 30, 20Y6November 30, 20Y6
1	AssetsExpensesLiabilitiesOwner's Equity		AssetsExpensesLiabilitiesOwner's Equity
2	Beverly Zahn, capitalBeverly Zahn, drawingCashDry cleaning expenseDry cleaning revenueRent expense	$	Accounts payableAccounts receivableDry cleaning revenueTruck expenseUtilities expenseWages expense	$
3	Accounts payableAccounts receivableBeverly Zahn, capitalBeverly Zahn, drawingMiscellaneous expenseUtilities expense
4	Accounts payableBeverly Zahn, drawingDry cleaning revenueDry cleaning expenseSuppliesSupplies expense		AssetsExpensesLiabilitiesOwner's Equity
5	Accounts payableBeverly Zahn, capitalCashDry cleaning expenseLandTruck expense		Accounts payableBeverly Zahn, capitalBeverly Zahn, drawingCashLandWages expense
6	Total assetsTotal expensesTotal liabilities and owner's equityNet income	$	Total assetsTotal expensesTotal liabilities and owner's equityNet income	$

4. Prepare a statement of cash flows for November: Use the minus sign to indicate cash outflows, decreases in cash, and cash payments.

Statement of Cash Flows
Bev's Dry CleanersStatement of Cash FlowsFor the Month Ended November 30, 20Y6November 30, 20Y6 Bev's Dry CleanersStatement of Cash FlowsFor the Month Ended November 30, 20Y6November 30, 20Y6 Bev's Dry CleanersStatement of Cash FlowsFor the Month Ended November 30, 20Y6November 30, 20Y6
1	Cash flows from (used for) operating activities:
2	Cash received from owner as investmentCash received from customersCash paid for purchase of land	$
3	Cash paid for expenses and to creditorsCash withdrawal by ownerCash paid for purchase of land
4	Net cash flow from operating activities		$
5	Cash flows from (used for) investing activities:
6	Cash paid for expenses and to creditorsCash withdrawal by ownerCash paid for purchase of land
7	Cash flows from (used for) financing activities:
8	Cash received from owner as investmentCash received from customersCash paid for expenses and to creditors	$
9	Cash paid for expenses and to creditorsCash withdrawal by ownerCash paid for purchase of land
10	Net cash flow from financing activities
11	Net increase in cash
12	Cash balance, November 1, 20Y6
13	Cash balance, November 30, 20Y6		$