Maria Gonzales opened a veterinary business in Nashville on August 1. On August
ID: 2363283 • Letter: M
Question
Maria Gonzales opened a veterinary business in Nashville 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. Gonzaleez, Capital - M. Gonzalez, Drawings + Revenues - Expenses (b) Prepare an income statement for September, an owner's equity statement for September, and a balance sheet at September 30. THANK YOU!Explanation / 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