Reference no: EM131821000
Problem
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 at wholesale rates. The assets and the liabilities of the business on July 1, 2016, are as follows: Cash, $47,000; Accounts Receivable, $95,000; Supplies, $8,600; Land, $76,000; Accounts Payable, $30,000. Business transactions during July are summarized as follows:
A. Joel Palk invested additional cash in the business with a deposit of $34,000 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, $32,375.
D. Paid rent for the month, $6,000.
E. Purchased supplies on account, $2,200.
F. Paid creditors on account, $22,600.
G. Charged customers for dry cleaning revenue on account, $86,750.
H. Received monthly invoice for dry cleaning expense for July (to be paid on August 10), $28,800.
I. Paid the following: wages expense, $8,200; truck expense, $2,000; utilities expense, $1,900; miscellaneous expense, $2,300.
J. Received cash from customers on account, $90,000.
K. Determined that the cost of supplies on hand was $5,300; therefore, the cost of supplies used during the month was $5,500.
L. Withdrew $13,000 cash for personal use.
Required:
1. Determine the amount of Joel Palk's capital as of July 1 of the current year.
|
What are total fixed expenses
: The selling price of a particular product is $85.00 per unit, the variable expense is $49.00 per unit, and the breakeven sales. what are total fixed expenses?
|
|
Direct-to-consumer advertising of prescription drugs
: The article "Should Canada Allow Direct-to-Consumer Advertising of Prescription Drugs?" (Canadian Family Physician [2009]: 130-131) calls
|
|
Discuss the effect of the designation of the default outcome
: Discuss the effect of the designation of the default outcome and the assignment of burden of proof in communicating priorities.
|
|
What are Madison annual payments
: Exercise in Compound Interest Serena Madison wishes to purchase a $820,000 house. She has accumulated a $180,000 down payment, but she wishes to borrow $640,000
|
|
Determine the amount of joel palks capital as of first july
: D'Lite Dry Cleaners is owned and operated by Joel Palk. Determine the amount of Joel Palk's capital as of July 1 of the current year.
|
|
What is your after-tax real rate of interest
: Inflation is 2 percent, and your marginal tax rate is 35 percent. What is your after-tax real rate of interest
|
|
Data provides convincing evidence
: Still assuming a sample size of n = 200, carry out a hypothesis test to determine if the data provides convincing evidence that the proportion
|
|
How do leading ceos and academia define a tqm system
: Deming preached the importance of top management leadership, customer-supplier partnerships, and what else that is important to a company?
|
|
How much will Bank of America lend Pfizer
: Suppose Pfizer agrees to repay $750 million at the end of 10 years. How much will Bank of America lend Pfizer?
|