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.

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Description: Question Two:D'Lite Dry Cleaners is owned and operated by Joel Palk. A building and equipment are currently beingrented, pending expansion to new facilities. The actual work of dry cleaning is done by another companyfor a fee. The assets and liabili

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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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; Land, $75,000;Accounts Payable, $40,000. Business transactions during July are summarized as follows:a. Joel Palk invested additional cash in the business with a deposit of $35,000 in the business bank account.b. Paid $50,000 for the purchase of land adjacent to land currently owned by D’Lite Dry Cleaners as a future building site.c. Received cash from cash customers for dry cleaning revenue, $32,125.d. Paid rent for the month, $6,000.e. Purchased supplies on account, $2,500.f. Paid creditors on account, $22,800.g. Charged customers for dry cleaning revenue on account, $84,750.h. Received monthly invoice for dry cleaning expense for July…
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