Prepare an income statement for September. On August 31, the balance sheet of Do
ID: 2377058 • Letter: P
Question
Prepare an income statement for September.
1. Paid $2,623 cash for accounts payable due. 2. Collected $1,393 of accounts receivable. 3. Purchased additional office equipment for $2,056, paying $782 in cash and the balance on account. 4. Earned revenue of $8,199, of which $3,456 is collected in cash and the balance is due in October. 5. Declared and paid a $2,016 cash dividend 6. Paid salaries $2,359, rent for September $1,102, and advertising expense $148. 7. Incurred utilities expense for month on account $201. 8. Received $14,143 from Capital Bank on a 6-month note payable. On August 31, the balance sheet of Donahue Veterinary Clinic showed Cash $11,154, Accounts Receivable $4,554, Supplies $600, Equipment $6,000, Accounts Payable $6,454, Common Stock $14,920, and Retained Earnings $934. During September, the following transactions occurred. Prepare an income statement for September. Prepare a retained earnings statement for September. Prepare a balance sheet at September 30.
Explanation / Answer
On August 31, the balance sheet of Donahue Veterinary Clinic showed
Cash $11,154,
Accounts Receivable $4,554,
Supplies $600,
Equipment $6,000,
Accounts Payable $6,454,
Common Stock $14,920,
Retained Earnings $934.
During September, the following transactions occurred.
1. Paid $2,623 cash for accounts payable due.
Account payable...Dr = $2623
Cash.. CR = $2623
2. Collected $1,393 of accounts receivable.
Cash... Dr = $1393
Account Receivable..Cr = 1393
3. Purchased additional office equipment for $2,056, paying $782 in cash and the balance on account.
Office Equipment.. DR = $2056
Cash..Cr = $782
Accrued Expense... Cr = $1274
4. Earned revenue of $8,199, of which $3,456 is paid in cash and the balance is due in October.
Revenue...Cr = $8199
Cash..Dr = $3456
Accounts Receivable... Dr=4743
5. Declared and paid a $2016 cash dividend
Dividend ..Dr = $2016
Cash.. Cr = $2016
6. Paid salaries $2,359, rent for September $1,102, and advertising expense $148.
Salaries...Dr = $2359
Rent..Dr = $1102
Advertising ...Dr = $148
Cash.. CR = $3609
7. Incurred utilities expense for month on account $210.
Expenses...Dr = $201
Accrued Expenses..Cr = $201
8. Received $10,000 from Capital Bank on a 6-month note payable.
Cash...Dr =$14,143
Notes-payable..CR =$14,143