Donna Corso opened a veterinary business in Hills, Iowa, on August 1, 1998. On August 31 the balance sheet showed: Cash \(\$ 9,000\); Accounts Receivable \(\$ 1,700\); Supplies \(\$ 600\); Office Equipment \(\$ 6,000\); Accounts Payable \(\$ 3,600\); Common Stock \(\$ 13,000\); and Retained Earnings \(\$ 700\). During September the following transactions occurred:

1. Paid \(\$ 3,100\) cash on accounts payable.

2. Collected \(\$ 1,300\) of accounts receivable.

3. Purchased additional office equipment for \(\$ 2,100\), paying \(\$ 800\) in cash and the balance on account 4. Earned revenue of \(\$ 5,900\), of which \(\$ 2,500\) is paid in cash and the balance is due in October.

5. Declared and paid a \(\$ 600\) cash dividend.

6. Paid salaries \(\$ 700\), rent for September \(\$ 900\), and advertising expense \(\$ 100\).

7. Incurred utility expenses for month on account, \(\$ 170\).

8. Received \(\$ 7,000\) from Hilldale Bank; the money was borrowed on a note payable.

\section*{Instructions}

(a) Prepare a tabular analysis of the September transactions beginning with August 31 balances. The column headings should be: Cash + Accounts Receivable + Supplies + Office Equipment \(=\) Notes Payable + Accounts Payable + Common Stock + Retained Earnings.

(b) Prepare an income statement for September, a retained earnings statement for September, and a balance sheet at September 30 .