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
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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.
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