Reference no: EM133151142
Question - On August 31, the balance sheet of Ayayai Veterinary Clinic showed Cash $10,800, Accounts Receivable $2,040, Supplies $720, Equipment $7,200, Accounts Payable $4,320, Common Stock $15,600, and Retained Earnings $840. During September, the following transactions occurred.
1. Paid $3,480 cash for accounts payable due.
2. Collected $1,560 of accounts receivable.
3. Purchased additional equipment for $2,520, paying $960 in cash and the balance on account.
4. Performed services worth $8,760, of which $3,000 is collected in cash and the balance is due in October.
5. Paid a $480 cash dividend.
6. Paid salaries $2,040, rent for September $1,080, and advertising expense $240.
7. Incurred utilities expense for month on account $196.
8. Received $12,000 from Capital Bank on a 6-month note payable.
Required -
I. Create a tabular analysis of the September transactions beginning with August 31 balances. Include margin explanations for any changes in revenues or expenses.
II. Create an income statement for September.
III. Create a retained earnings statement for September.
IV. Create a classified balance sheet at September 30.