Question Two: D'Lite Dry Cleaners is owned and operated by Joel Palk. 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 liabilities of the business on July 1, 2019, are as follows: Cash, $45,000; Accounts Receivable, $93,000; Supplies, $7,000; Accounts Payable, $40,000. The following transaction happened during July. 1. Charged customers for dry cleaning revenue on account, $84,750 2. Received cash from customers on account, $88,000. 3. Paid creditors on account, $22,800. 4. Purchased supplies on account, $2,500. 5. Received cash from cash customers for dry cleaning revenue, $32,125. Required: Record the above transaction in T Account and balance each T account at the end.
Question Two: D'Lite Dry Cleaners is owned and operated by Joel Palk. 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 liabilities of the business on July 1, 2019, are as follows: Cash, $45,000; Accounts Receivable, $93,000; Supplies, $7,000; Accounts Payable, $40,000. The following transaction happened during July. 1. Charged customers for dry cleaning revenue on account, $84,750 2. Received cash from customers on account, $88,000. 3. Paid creditors on account, $22,800. 4. Purchased supplies on account, $2,500. 5. Received cash from cash customers for dry cleaning revenue, $32,125. Required: Record the above transaction in T Account and balance each T account at the end.
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter12: Corporations: Organization, Capital Structure, And Operating Rules
Section: Chapter Questions
Problem 34P
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