Maria Gonzalez opened a veterinary business in Nashville, Tennessee, on August 1. On August 31, the balance sheet showed Cash $9,000, Accounts Receivable $1,700, Supplies $600, Office Equipment $6,000, Accounts Payable $3,600, and M. Gonzalez, 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 office equipment for $2,100, paying $800 in cash and the balance on account. 4. Earned revenue of $8,000, of which $2,500 is paid in cash and the balance is due in October. 5. Withdrew $1,000 cash for personal use. 6. Paid salaries $1,700, rent for September $900, and advertising expense $300. 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 + Office Equipment = Notes Payable + Accounts Payable + M. Gonzalez, Capital M. Gonzalez, Drawings + Revenues Expenses. (b) Prepare an income statement for September, an owner equity statement for September, and a balance sheet at September 30.
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May 2021
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