Question
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
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, liabilities, and common stock of the business on November 1, 20Y3, are as follows: Cash, $39,000; Accounts Receivable, $80,000; Supplies, $11,000; Land, $50,000; Accounts Payable, $31,500; Common Stock, $50,000. Business transactions during November are summarized as follows: Beverly Zahn invested additional cash in exchange for common stock with a deposit of $21,000 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 $35,000. Paid rent for the month, $4,000. Charged customers for dry cleaning revenue on account, $72,000. Paid creditors on account, $20,000. Purchased supplies on account, $8,000. Received cash from customers for dry cleaning revenue, $38,000. Received cash from customers on account, $77,000. Received monthly invoice for dry cleaning expense for November (to be paid on December 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 supplies used during the month was $7,200. Paid dividends, $5,000.
- Prepare an income statement for the month ended November 30, 20Y3
- Prepare a statement of stockholders equity for the month ended November 30, 20Y3. For those boxes in which no entry is required, leave the box blank. If a net loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign.
- Prepare a statement of stockholders equity for the month ended November 30, 20Y3. For those boxes in which no entry is required, leave the box blank. If a net loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign.
- Prepare a statement of cash flows for the month ending November 30, 20Y3. Use the minus sign to indicate cash outflows, cash payments, and decreases in cash.
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