Maria Gonzalez opened a veterinary business in Nashville, Tennessee, on August 1
ID: 2362643 • Letter: M
Question
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. Paid $2,900 cash on accounts payable. Collected $1,300 of accounts receivable. Purchased additional office equipment for $2,100, paying $800 in cash and the balance on account. Earned revenue of $8,000 of which $2,500 is collected in cash and the balance is due in October. Withdrew $1,000 in cash for personal use. Paid salaries $1,700, rent for September $900, and advertising expenses $300. Incurred utility expenses for month on account $170. Received $10,000 from Capital Money Bank - money borrowed on a note payable. Instructions (a) Complete the table below. (If amount is a decrease, use either a negative sign preceding the number eg -45 or parentheses eg (45). For item 6. list amounts from largest to smallest eg 10, 5, 3, 2. If answer is zero, please enter 0. All blanks must be filled in. Note: Drawings and Expenses always decrease the account.) MExplanation / Answer
Your table does look messed up. I don't know what nos. 1 to 8 are for. I tried my best. Cash $9,000 - $3,200 + $1,400 - $800 + $2,600 - $1,400 - $2,700 + $10,000 = $14,900 Accounts Receivable $1,700 - $1,400 + $6,400 = $6,700 Supplies $600 = $600 Office Equipment $6,000 + $2,100 = $8,100 ____________________________________ Notes Payable + $10,000 = $10,000 Accounts Payable $3,600 - $3,200 + $1,300 + $170 = $1,870 Capital $13,700 + $9,000 - $1,400 - $2,700 - $170 = $18,430 Income Statement For the Month Ended September 30, 2008 Revenues $9,000 Expenses salaries $1,500, rent $900, advertising expenses $300. utility expenses $170. Total expenses $2,870 Net income $6,130 Owner's Equity Statement For the Month Ended September 30, 2008 Beginning balance $13,700 Add: Net income $6,130 Less: Withdrawal ($1,400) = Ending balance $18,430 Balance Sheet September 30, 2008 Assets Non-current assets- Office equipment $8,100 Current assets- Cash $14,900 AR $6,700 Supplies $600 Total assets $30,300 Liabilities and Owner's Equity Liabilities Notes payable $10,000 AP $1,870 Total Liabilities $11,870 Owner's equity $18,430 Total liabilities and owner's equity $30,300