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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![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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F67eeef0b-e6a8-43af-a851-bbb71fd1c3af%2F54f1e7b1-6af8-4fbd-9c0b-1030c3b9c493%2F6yhq24o_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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.
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