Question

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On August 31, the balance sheet of Donahue Veterinary Clinic showed Cash $9,000, Accounts Receivable $1,700, Supplies $600, 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 office equipment for $2,100, paying $800 in cash and the balance on account.
• 4. Earned revenue of $7,300, of which $2,500 is collected in cash and the balance is due in October.
• 5. Declared 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 balance sheet at September 30.

Answer 1

Donahue Veterinary Clinic
Balance Sheet
September 30
Asets
Cash		$15,900
Accounts Receivable		$5,200
Supplies		$600
Equipment		$8,100
Total Assets		$29,800
Liabilities and Stockholders' Equity
Liabilities
Accounts Payable	$2,170
Note Payable	$10,000
Total Liabilities		$12,170
Stockholer's Equity
Common Stock	$13,000
Retained Earnings	$4,630
Total Stockholders' Equity		$17,630
Total Liabilities and Stockholders' Equity		$29,800
Working
Cash	(9,000 - 2,900 + 1,300 - 800 + 2,500 - 400 - 1,700 - 900 - 200 + 10,000)
Accounts Receivable	(1,700 - 1,300 + 4,800)
Supplies	600
Equipment	(6,000 + 2,100 0
Accounts Payable	(3,600 - 2,900 + 1,300 + 170)
Note Payable	10,000
Common Stock	13,000
Retained Earnings	(700 + 7,300 - 400 - 1,700 - 900 - 200 - 170)