Question

Problem 1-2A On August 31, the balance sheet of La Brava Veterinary Clinic showed Cash $9,000, Accounts Receivable $1,700, Supplies 5600, Equipment $6,000, Accounts Payable $3,600, Common Stock $13,000, and Retained Earnings $700. During September, the following transactions occurred. 1. Paid $2,900 cash for accounts payable due. 2. Collected $1,300 of accounts receivable. 3. Purchased additional equipment for $2,100, paying $800 in cash and the balance on account. 4. Recognized revenue of $7,300, of which $2,500 is collected in cash and the balance is due in October 5. Dedared and paid a $400 cash dividend. 6. Paid salaries $1,700, rent for September $900, and advertising expense $200. 7. Incurred utilities expense for month on account $170. 8. Received $10,000 from Capital Bank on a 6-month note payable. Prepare a tabular analysis of the September transactions beginning with August 31 balances. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset Liability or Equity item that was reduced. See Illustration 1-8 for example.) Assets Accounts 'Receivable $ Cash La Brava Veterinary Clinic Liabilities Stockholders' Equity Notes Accounts Common + Retained Payable Payable Stock Earnings Revenues Expenses - Supplies - Equipment Dividends Bal. $ 2. Salaries and wages expense Rent expense Advertising expense

Answer 1

Solution:

La Brava Veterinary Clinic
Event	Assets								Liabilities				Stockholder's equity
	Cash	+	Accounts receivables	+	Supplies	+	Equipment	=	Notes payable	+	Accounts Payable	+	Common Stock	+	Retained Earnings	+	Revenue	-	Expenses	-	Dividends
Bal.	$9,000.00		$1,700.00		$600.00		$6,000.00		$0.00		$3,600.00		$13,000.00		$700.00		$0.00		$0.00		$0.00
1	-$2,900.00										-$2,900.00
2	$1,300.00		-$1,300.00
3	-$800.00						$2,100.00				$1,300.00
4	$2,500.00		$4,800.00														$7,300.00
5	-$400.00																				$400.00
6	-$2,800.00																		$1,700.00			Salaries and Wages expense
																			$900.00			Rent Expense
																			$200.00			Advertising Expense
7											$170.00								$170.00			Utilities Expense
8	$10,000.00								$10,000.00
Bal.	$15,900.00		$5,200.00		$600.00		$8,100.00		$10,000.00		$2,170.00		$13,000.00		$700.00		$7,300.00		$2,970.00		$400.00