Question
Jack Thyme opened Thyme Company, a veterinary business on August 1, 2017. On August 31, the balance sheet showed Cash $9,000; Accounts Receivable $1,700; Supplies
Jack Thyme opened Thyme Company, a veterinary business
on August 1, 2017. On August 31, the balance sheet showed Cash
$9,000; Accounts Receivable $1,700; Supplies $600; Equipment
$5,000; Accounts Payable $3,600; Common Stock $10,000; and
Retained Earnings $2,700. During September, the following
transactions occurred.
Sept. 2 Paid $3,400 cash for accounts payable due.
5 Received $1,200 from customers in payment of accounts
receivable.
8 Purchased additional office equipment for $5,100, paying
$1,000 in cash and the balance on account.
13 Performed services worth $10,600, of which $2,300 is paid
in cash and the balance is due in October.
17 Paid a $600 cash dividend.
22 Paid salaries $900, rent for September $1,100, and
advertising expense $250.
26 Incurred utility expenses for the month on account $220.
30 Received $5,000 from Ben 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: Cash + Accounts Receivable + Supplies + Equipment = Notes
Payable + Accounts Payable + Common Stock + Retained
Earnings + Revenues Expenses Dividends. Include margin
explanations for any changes in Retained Earnings.
(b) Prepare an income statement for September, a retained earnings
statement for September, and a classified balance sheet at
September 30, 2017.
Analyze transactions
and prepare an income
statement, retained
earnings statement, and
balance sheet.
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