Reference no: EM133216417

Izabela Jach opened a medical office under the name Izabela I. Jach, MD, on August 1, 2021.

On August 31, the balance sheet showed:

Cash $3,000

Accounts Receivable $1,500

Supplies $600

Equipment $7,500

Accounts Payable $5,500

Note Payable $3,000

Izabela Jach, Capital $4,100

During September, the following transactions occurred:

Sept. 4 Collected $800 of accounts receivable.
Sept. 5 Provided services of $10,500, of which $7,700 was collected from patients and the remainder was on account.
Sept. 7 Paid $2,900 on accounts payable.
Sept. 12 Purchased additional equipment for $2,300, paying $800 cash and leaving the balance on account.
Sept. 15 Purchased additional equipment for $2,300, paying $800 cash and leaving the balance on account.
Sept. 15 Paid salaries, $2,800; rent for September, $1,900; and advertising expenses, $275.
Sept. 18 Collected the balance of the accounts receivable from August 31.
Sept. 20 Withdrew $1,000 for personal use.
Sept. 26 Borrowed $3,000 from the Bank of Montreal on a note payable.
Sept. 28 Signed a contract to provide medical services, not covered under the government health plan, to employees of CRS Corp. in October for $5,700. CRS Corp. will pay the amount owing after the medical services have been provided.
Sept. 29 Received the telephone bill for September, $325.
Sept. 30 Billed the government $10,000 for services provided to patients in September.

1. Prepare an income statement.

2. Prepare a statement of owner's equity for September.

3. Prepare a balance sheet at September 30.