Maria Gonzalez opened a veterinary business in Nashville, Tennessee, on August 1. On August 31, the balance sheet showed Cash $9,000, Accounts Receivable $1,700, Supplies $600, Office Equipment $6,000, Accounts Payable $3,600, and M. Gonzalez, Capital $13,700. During September the following transactions occurred.
1. Paid $3,200 cash on accounts payable.
2. Collected $1,400 of accounts receivable.
3. Purchased additional office equipment for $2,100, paying $800 in cash and the balance on account.
4. Earned revenue of $9,000 of which $2,600 is collected in cash and the balance is due in October.
5. Withdrew $1,400 in cash for personal use.
6. Paid salaries $1,500, rent for September $900, and advertising expenses $300.
7. Incurred utility expenses for month on account $170.
8. Received $10,000 from Capital Money Bank - money borrowed on a note payable.
Instructions
(a) Complete the table below. (For example, if account balance increases by $1,000, input +1,000. If it decreases by $1,000, input -1,000. For no change enter a 0, do not leave any fields blank. List multiple entries for #6 in descending order of amount.)
MARIA GONZALEZ, VETERINARIAN
Cash
+
Accounts
Receivable
+
Supplies
+
Office
Eequipment
=
Notes
Payable
+
Accounts
Payable
+
M. Gonzalez
Capital
Bal. $9,000 $1,700 $600 $6,000 $3,600 $13,700
1.
2.
3.
4.
5.
6.
7.
8.
(b) Prepare an income statement for September, an owner's equity statement for September, and a balance sheet at September 30. For the Income Statement, put brackets around the number if a net loss results. (List multiple entries in descending order of amount. For balance sheet list assets in order of liquidity and liabilities in descending order of amount. List all amounts as positive numbers and add and subtract as necessary.)
Maria Gonzalez, Veterinarian
Income Statement
For the Month Ended September 30, 2008
Revenues
$
Expenses
$
Total expenses
Net income (loss)
$
Maria Gonzalez, Veterinarian
Owner's Equity Statement
For the Month Ended September 30, 2008
$
Add:
Less:
$
Maria Gonzalez, Veterinarian
Balance Sheet
September 31, 2008
Assets
$
Total assets
$
Liabilities and Owner's Equity
Liabilities
$
Total Liabilities
Owner's equity
Total liabilities and owner's equity
$
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