On August 31, the balance sheet of La Brava Veterinary Clinic showed Cash $9,000, Accounts Receivable $1,700, Supplies $600, Equipment $6,000, Accounts Payable $3,600, Common Stock $13,000, and Retained Earnings $700. During September, the following transactions occurred. 1. Paid $2,900
On August 31, the balance sheet of La Brava Veterinary Clinic showed Cash $9,000, Accounts Receivable $1,700, Supplies $600, Equipment $6,000, Accounts Payable $3,600, Common Stock $13,000, and Retained Earnings $700. During September, the following transactions occurred.
1. Paid $2,900 cash for accounts payable due.
2. Collected $1,300 of accounts receivable.
3. Purchased additional equipment for $2,100, paying $800 in cash and the balance on account.
4. Recognized revenue of $7,300, of which $2,500 is collected in cash and the balance is due in October.
5. Declared and paid a $400 cash dividend.
6. Paid salaries $1,700, rent for September $900, and advertising expense $200.
7. Incurred utilities expense for month on account $170.
8. Received $10,000 from Capital 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 as follows: Cash + Accounts Receivable + Supplies + Equipment = Notes Payable + Accounts Payable + Common Stock + Retained Earnings + Revenues – Expenses – Dividends.
(b) Prepare an income statement for September, a retained earnings statement for September, and a balance sheet at September 30.
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a LA BRAVA VETERINARY CLINIC Cash Accounts Receivable Supplies Equipment Notes Payable Accounts Paya…View the full answer
(a) Tabular Analysis of September Transactions Cash Accounts Receivable Supplies Equipment Notes Payable Accounts Payable Common Stock Retained Earnings Revenues Expenses Dividends Bal. $9,000 $1,700 $600 View the full answer
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