Question: Joe Thyme opened Thyme Company a veterinary business in Neosho

Joe Thyme opened Thyme Company, a veterinary business in Neosho, Missouri, on August 1, 2014. On August 31, the balance sheet showed Cash $9,000; Accounts Receivable $1,700; Supplies $600; Equipment $5,000; Accounts Payable $3,600; Common Stock $10,000; and Retained Earnings $2,700. During September, the following transactions occurred.
Sept. 2 Paid $3,400 cash for accounts payable due.
5 Received $1,200 from customers in payment of accounts receivable.
8 Purchased additional offce equipment for $5,100, paying $1,000 in cash and the balance on account.
13 Performed services worth $10,600, of which $2,300 is paid in cash and the balance is due in October.
17 Paid a $600 cash dividend.
22 Paid salaries $900, rent for September $1,100, and advertising expense $250.
26 Incurred utility expenses for the month on account $220.
30 Received $5,000 from Hilldale Bank on a 6-month note payable.
(a) Prepare a tabular analysis of the September transactions beginning with August 31 balances. The column headings should be Cash + Accounts Receivable + Supplies + Equipment = Notes Payable + Accounts Payable + Common Stock + Retained Earnings + Revenues - Expenses - Dividends. Include margin explanations for any changes in Retained Earnings.
(b) Prepare an income statement for September, a retained earnings statement for September, and a classified balance sheet at September 30, 2014.

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  • CreatedApril 07, 2014
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