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On August 31, the balance sheet of Whispering Winds Corp. showed Cash $10,000, Accounts Receivable $2,700, Supplies $600, Equipment $6,000, Accounts Payable $4,600, Common Stock
On August 31, the balance sheet of Whispering Winds Corp. showed Cash $10,000, Accounts Receivable $2,700, Supplies $600, Equipment $6,000, Accounts Payable $4,600, Common Stock $13,950, and Retained Earnings $750 During September, the following transactions occurred. 1. Paid $2,200 cash for accounts payable due. 2. Collected $1,650 of accounts receivable. 3. Purchased additional equipment for $2,150, paying $900 in cash and the balance on account. 4. Recognized revenue of $8,000, of which $2,950 is collected in cash and the balance is due in October. 5. Declared and paid a $1,050 cash dividend. 6. Paid salaries $2,050, rent for September 1,150, and advertising expense $200. 7. Incurred utilities expense for month on account $260. 8. Received $12,000 from Capital Bank on a 6-month note payable. Prepare a tabular analysis of the September transactions beginning with August 31 balances. (If a transaction causes a decrease in Assets, Liabilities or Stockholders Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. See Illustration 1-8 for example.)
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