Scribd
Upload
34 views2 pages

Accounting Assignment: White Dry Cleaners

1) White Dry Cleaners' assets and liabilities as of December 1, 2016 are provided, including cash, accounts receivable, supplies, equipment, land, and accounts payable. 2) During December, the business received cash from customers, paid creditors, received an additional investment, paid rent and bills. Customers were also charged and paid on account. 3) The problem requires inserting the beginning balances into a t-account chart, analyzing each transaction and its effect in the chart, and preparing financial statements for December 2016.

Uploaded by

primhaile assefa
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
34 views2 pages

Accounting Assignment: White Dry Cleaners

1) White Dry Cleaners' assets and liabilities as of December 1, 2016 are provided, including cash, accounts receivable, supplies, equipment, land, and accounts payable. 2) During December, the business received cash from customers, paid creditors, received an additional investment, paid rent and bills. Customers were also charged and paid on account. 3) The problem requires inserting the beginning balances into a t-account chart, analyzing each transaction and its effect in the chart, and preparing financial statements for December 2016.

Uploaded by

primhaile assefa
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

GAGE UNIVERSITY COLLEGE

ACCOUNTING AND FINANCE FOR MANAGERS


Individual Assignment (15%)

ILLUSTRATIVE PROBLEM
The assets and liabilities of White dry cleaners on December 1, 2016 of the current
year are as follows: Cash Br.1,000, Accounts Receivable, Br.2,200, Supplies Br.
850, Equipment Br. 3,500, Land Br. 11,450. Accounts Payable, Br 4,030. A white
dry cleaner is a sole proprietor owned and managed by W/o Mihret. Currently the
building and delivery truck are being rented, pending expansion to new facilities.
Another company at wholesale rates of does the company work of dry cleaning.
Business transactions during December are summarized as follows.
1. Received cash from customers for dry cleaning service Br. 4,928.
2. Paid creditors on account Br. 1,755.
3. Received cash from W/r Mihret as additional investment Br. 3,700.
4. Paid rent for the month Br. 1,200.
5. Charged customers for dry cleaning service delivered on account Br.1,025.
6. Purchased supplies on account, Br. 245
7. Received cash from customers on account Br. 2,000
8. Received a monthly bill for electricity for the month December(To be paid
on January 2, Br. 1,635,
9. Paid the following: Wages expense, Br. 850, Truck Expense, Br. 250,
Utilities Expense, Br.325, miscellaneous [Link]. 75
10.W/r Mihret the owner withdraws cash Br. 1,800 for her personal use.
[Link] by taking an inventory count, the cost of supplies used during
the month Br. 115.
Required:
a. Insert the beginning balances to the appropriate account using the
following tabular headings.

Asset Liability Owner's Equity

Accounts +Owner -
Tran. Cash Receivabl +Supplie +Equipmen =Accoun s +Revenu Expens
No. + e s t t Payable Capital e e -Drawing

b. Analyze the above transactions and Indicate the effect of each


transaction and the balances after each transaction, using the following
tabular headings:
c. Prepare financial statements for the business for the month of
December 31, 2016.

You might also like