On August 31, 2017, the statement of financial position of Donahue Veterinary Clinic Ltd. showed Cash 9,000,

Question:

On August 31, 2017, the statement of financial position of Donahue Veterinary Clinic Ltd. showed Cash £9,000, Accounts Receivable £1,700, Supplies £600, Equipment £6,000, Accounts Payable £3,600, Share Capital-Ordinary £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 equipment for £2,100, paying £800 in cash and the balance on account.

4. Recognized 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.

Instructions

(a) Prepare a tabular analysis of the September transactions beginning with August 31 balances. The column headings should be as follows: Cash + Accounts Receivable + Supplies + Equipment = Notes Payable + Accounts Payable + Share Capital + Retained Earnings + Revenues − Expenses − Dividends.

(b) Prepare an income statement for September, a retained earnings statement for September, and a statement of financial position at September 30, 2017.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...