Q2. Peter Nimmer opened a veterinary business in Nashville, Tennessee, on August 1, 2017. On August 31, the balance sheet showed Cash $9,000, Accounts Receivable $1,700, Supplies $600, Equipment $6,000, Accounts Payable $3,600, and Owner's Capital $13,700. During September, the following transactions occurred. 1. Paid $2,900 cash on accounts payable. 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 $7,800, of which $2,500 is received in cash and the balance is due in October. 5. Withdrew $1,100 cash for personal use. 6. Paid salaries $1,700, rent for September $900, and advertising expense $450. 7. Incurred utilities expense for month on account $170. 8. Received $10,000 from Capital Bank (money borrowed on a note payable). Instructions (a) Prepare a tabular analysis of the September transactions beginning with August 31 balances. The column headings should be as follows: Cash 1 Accounts Receivable 1 Supplies 1 Equipment 5 Notes Payable 1 Accounts Payable 1 Owner's Capital 2 Owner's Drawings 1 Revenues 2 Expenses. (b) Prepare an income statement for September, an owner's equity statement for September, and a balance sheet at September 30.
Q2. Peter Nimmer opened a veterinary business in Nashville, Tennessee, on August 1, 2017. On August 31, the balance sheet showed Cash $9,000, Accounts Receivable $1,700, Supplies $600, Equipment $6,000, Accounts Payable $3,600, and Owner's Capital $13,700. During September, the following transactions occurred. 1. Paid $2,900 cash on accounts payable. 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 $7,800, of which $2,500 is received in cash and the balance is due in October. 5. Withdrew $1,100 cash for personal use. 6. Paid salaries $1,700, rent for September $900, and advertising expense $450. 7. Incurred utilities expense for month on account $170. 8. Received $10,000 from Capital Bank (money borrowed on a note payable). Instructions (a) Prepare a tabular analysis of the September transactions beginning with August 31 balances. The column headings should be as follows: Cash 1 Accounts Receivable 1 Supplies 1 Equipment 5 Notes Payable 1 Accounts Payable 1 Owner's Capital 2 Owner's Drawings 1 Revenues 2 Expenses. (b) Prepare an income statement for September, an owner's equity statement for September, and a balance sheet at September 30.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Topic Video
Question

Transcribed Image Text:6:26 : O
ON ll 12%
Sign in to edit and save changes to this file.
Q2. Peter Nimmer opened a veterinary business in
Nashville, Tennessee, on August 1,
2017. On August 31, the balance sheet showed Cash
$9,000, Accounts Receivable $1,700,
Supplies $600, Equipment $6,000, Accounts Payable
$3,600, and Owner's Capital $13,700.
During September, the following transactions
occurred.
1. Paid $2,900 cash on accounts payable.
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 $7,800, of which $2,500 is
received in cash and the balance is due in October.
5. Withdrew $1,100 cash for personal use.
6. Paid salaries $1,700, rent for September $900, and
advertising expense $450.
7. Incurred utilities expense for month on account
$170.
8. Received $10,000 from Capital Bank (money
borrowed on a note payable).
Instructions
(a) Prepare a tabular analysis of the September
transactions beginning with August 31
balances. The column headings should be as follows:
Cash 1 Accounts Receivable 1
Supplies 1 Equipment 5 Notes Payable 1 Accounts
Payable 1 Owner's Capital 2
Owner's Drawings 1 Revenues 2 Expenses.
(b) Prepare an income statement for September, an
owner's equity statement for September,
and a balance sheet at September 30.
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON

Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education

Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education