Maria Gonzalez opened a veterinary business in Nashville, Tennessee, on August 1. On August 31, the balance sheet showed Cash $8,967, Accounts Receivable $1,623, Supplies $585, Office Equipment $5,926, Accounts Payable $3,646, and M. Gonzalez, Capital $13,455. During September the following transactions occurred.
Paid $2,901 cash on accounts payable.
Collected $1,268 of accounts receivable.
Purchased additional office equipment for $3,571, paying $825 in cash and the balance on account.
Earned revenue of $8,042 of which $2,530 is collected in cash and the balance is due in October.
Withdrew $1,060 in cash for personal use.
Paid salaries $1,621, rent for September $904, and advertising expenses $315.
Incurred utility expenses for month on account $110.
Received $10,497 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.)
(b) Complete the income statement for September, an owner’s equity statement for September, and a balance sheet at September 30. (List amounts from largest to smallest eg 10, 5, 3, 2. If a net loss, record amount using either a negative sign preceding the number eg -45 or parentheses eg (45). For the balance sheet, list assets in order of liquidity and liabilities from largest to smallest eg 10, 5, 3, 2.)