financial statement 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 at wholesale rates. The assets, liabilities, and common

stock of the business on November $1,20$Y$3,$ 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:

a$.$ Beverly Zahn invested additional cash in exchange for common stock with a deposit of $$21,000$ in the business bank account.

b$.$ 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.$

c$.$ Paid rent for the month, $$4,000.$

d$.$ Charged customers for dry cleaning revenue on account, $$72,000.$

e$.$ Paid creditors on account, $$20,000.$

f$.$ Purchased supplies on account, $$8,000.$

g$.$ Received cash from customers for dry cleaning revenue, $$38,000.$

h$.$ Received cash from customers on account, $$77,000.$

i$.$ Received monthly invoice for dry cleaning expense for November $($to be paid on December $10),$ $$29,450.$

j$.$ Paid the following: wages expense, $$24,000$; truck expense, $$2,100$; utilities expense, $$1,800$; miscellaneous expense, $$1,300.$

k$.$ Determined that the cost of supplies on hand was $$11,800$; therefore, the cost of supplies used during the month was $$7,200.$

l$.$ Paid dividends, $$5,000.$

Required:

Determine the amount of retained earnings as of November $1.$

$

State the assets, liabilities, and stockholders' equity as of November $1$ 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. For those boxes in which no entry is required, leave the box blank. For those boxes in which you must enter subtractive

or negative numbers use a minus sign. $($Example: $-300)$ 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.

Bev's Dry Cleaners

Statement of Cash Flows

For the Month Ended November $30,20$ Y $3$

Cash flows from $($used for$)$ investing activities:

Cash flows from $($used for$)$ financing activities:

Cash received from issuing common stock $$$$21,000$

Cash paid for dividends

Net cash flows from financing activities

Net increase in cash

$$

Cash balance, November $30,20$Y$3$