Reference no: EM132838676
On August 31, the balance sheet of Sunland Company showed Cash $11,000, Accounts Receivable $3,700, Supplies $600, Equipment $6,000, Accounts Payable $5,600, Common Stock $14,750, and Retained Earnings $950.
During September, the following transactions occurred.
1. Paid $2,700 cash for accounts payable due.
2. Collected $2,250 of accounts receivable
3. Purchased additional equipment for $2,150, paying $800 in cash and the balance on account.
4. Recognized revenue of $7,650, of which $1,750 is collected in cash and the balance is due in October.
5. Declared and paid a $1,450 cash dividend
6. Paid salaries $2,400, rent for September $1,100, and advertising expense $100.
7. Incurred utilities expense for month on account $200.
8. Received $10,000 from Capital Bank on a 6-month note payable.
Problem (a) Prepare a tabular analysis of the September transactions beginning with August 31 balances.
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