Question
Please help all I need is to Determine the amount of Beverly Zahn's capital as of November 1. Bev's Dry Cleaners is owned and operated
Please help all I need is to Determine the amount of Beverly Zahn's capital as of November 1.
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:
- Beverly Zahn invested additional cash in the business 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 cash 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.
- Withdrew $5,000 for personal use.
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