Peter Nimmer opened a veterinary business in Nashville, Tennessee, on August 1, 2014. On August 31, the balance sheet showed Cash $9,000, Accounts Receivable $1,700, Supplies $600, Equipment $6,000, Accounts Payable $3,600, and Owner’s Capital $13,700.

During September, the following transactions occurred.

1. Paid $2,900 cash on accounts payable.

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 $7,800, of which $2,500 is received in cash and the balance is due in October.

5. Withdrew $1,100 cash for personal use.

6. Paid salaries $1,700, rent for September $900, and advertising expense $450.

7. Incurred utilities expense for month on account $170.

8. Received $10,000 from Capital Bank (money borrowed on a note payable).

Instructions

(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 + Owner’s Capital – Owner’s Drawings + Revenues – Expenses.

(b) Prepare an income statement for September, an owner’s equity statement for September, and a balance sheet at September 30.