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 capitol stock of the business on Nov. 1, 2012 are as follows:
Cash = $39,000
Accounts Receivable = $70,000
Supplies = $11,000
Land = $50,000
Accounts Payable = $30,000
Capitol Stock = $50,000
Business transactions during November are summarized as follows:
a. Beverly invested additional cash in exchange for capitol stock with a deposit of $21,000 in the business bank account.
b. Purchased land adjacent to land currently owned to use in the future as 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 creditor 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 Dec 10) $29,000
k. Determined that the cost of supplies on hand was $11,800; therefore the cost of supplies used during the month was $7,200