Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 152 views

    Financial and Managerial Accounting

    Uploaded by

    cons the
    The document provides a list of transactions for Bev's Dry Cleaners for the month of November 2014. It includes transactions such as investing additional capital, purchasing land and supplies, paying expenses, earning revenue, and paying dividends. Students are instructed to prepare financial statements including an income statement, retained earnings statement, and balance sheet for November using the transaction information provided.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Financial and Managerial Accounting

    Uploaded by

    cons the
    152 views1 page
    The document provides a list of transactions for Bev's Dry Cleaners for the month of November 2014. It includes transactions such as investing additional capital, purchasing land and supplies, paying expenses, earning revenue, and paying dividends. Students are instructed to prepare financial statements including an income statement, retained earnings statement, and balance sheet for November using the transaction information provided.

    Original Description:

    Financial and Managerial Accounting (78)

    Original Title

    Financial and Managerial Accounting (78)

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document provides a list of transactions for Bev's Dry Cleaners for the month of November 2014. It includes transactions such as investing additional capital, purchasing land and supplies, paying expenses, earning revenue, and paying dividends. Students are instructed to prepare financial statements including an income statement, retained earnings statement, and balance sheet for November using the transaction information provided.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    152 views1 page

    Financial and Managerial Accounting

    Uploaded by

    cons the
    The document provides a list of transactions for Bev's Dry Cleaners for the month of November 2014. It includes transactions such as investing additional capital, purchasing land and supplies, paying expenses, earning revenue, and paying dividends. Students are instructed to prepare financial statements including an income statement, retained earnings statement, and balance sheet for November using the transaction information provided.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 1

    44

    Chapter 1 Introduction to Accounting and Business

    a. Opened a business bank account with a deposit of $24,000 in exchange for capital
    stock.
    b. Paid rent on office and equipment for the month, $3,600.
    c. Paid automobile expenses (including rental charge) for month, $1,350, and miscel-
    laneous expenses, $600.
    d. Purchased office supplies on account, $1,200.
    e. Earned sales commissions, receiving cash, $19,800.
    f. Paid creditor on account, $750.
    g. Paid office salaries, $2,500.
    h. Paid dividends, $3,500.
    i. Determined that the cost of supplies on hand was $300; therefore, the cost of supplies
    used was $900.
    Instructions
    1. Indicate the effect of each transaction and the balances after each transaction, using
    the following tabular headings:

    Assets 5 Liabilities 1 Stockholders’ Equity


    Accounts Capital Sales Rent Salaries Auto Supplies Misc.
    Cash + Supplies = Payable + Stock – Dividends + Commissions – Expense – Expense – Expense – Expense – Expense

    2. Prepare an income statement for April, a retained earnings statement for April, and a
    balance sheet as of April 30.

    PR 1-5B  Transactions; financial statements OBJ. 4, 5


    3. Net income: Bev’s Dry Cleaners is owned and operated by Beverly Zahn. A building and equipment
    $40,150 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 capi-
    tal stock of the business on November 1, 2014, are as follows: Cash, $39,000; Accounts
    Receivable, $80,000; Supplies, $11,000; Land, $50,000; Accounts Payable, $31,500; Capital
    Stock, $50,000. Business transactions during November are summarized as follows:
    a. Beverly Zahn invested additional cash in exchange for capital 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 cash 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 De-
    cember 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 sup-
    plies used during the month was $7,200.
    l. Paid dividends, $5,000.
    Instructions
    1. Determine the amount of retained earnings as of November 1.
    2. 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.

    You might also like