Question

On August 31, the balance sheet of Novak Veterinary Clinic showed Cash $11,000, Accounts Receivable $3,700, Supplies $600, Equipment $6,000, Accounts Payable $5,600, Common Stock $14,900, and Retained Earnings $800. During September, the following transactions occurred.

1.		Paid $3,450 cash for accounts payable due.
2.		Collected $1,500 of accounts receivable.
3.		Purchased additional equipment for $2,500, paying $700 in cash and the balance on account.
4.		Performed services worth $6,800, of which $3,150 is collected in cash and the balance is due in October.
5.		Declared and paid a $850 cash dividend.
6.		Paid salaries $1,850, rent for September $1,150, and advertising expense $150.
7.		Incurred utilities expense for month on account $270.
8.		Received $10,500 from Capital Bank on a 6-month note payable.

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please provide me the answers and explanations on how to find cash and expenses for row 6 as well as how to fill in the two rows below it. in other words , provide answers and explanations to anything highlighted red in the photo

Answer 1

You have done everything correctly , but for entry 6 just put all the entries seperately, instead of adding it as all are the saperate transaction .ans also u can see their are three rows provided for you to put the entries.

Entry no 6.

Cash

Account Receivable

Supplies

Equipment

=

Note Payable

Account Payable

Common Stock

Retained Earning

Revenue

Expenses

Dividend

-1850

-1850

-1150

-1150

-150

-150

Entries for above will be , as this are the separate transactions hence separate entries will be pass

Salaries Expense Dr $1850

To Cash ...$1850

For Payment of Rent

Rent Expense Dr $1150

To Cash $1150

For Payment of Advertisement expense

Advertisement Expense Dr $150

To Cash .......$150

Hope it is clear now . :)