Question
Ramona Castro opened a veterinary business in Nashville, Tennessee, on August 1. On August 31, the balance sheet showed Cash $11,739, Accounts Receivable $4,439, Supplies
Ramona Castro opened a veterinary business in Nashville, Tennessee, on August 1. On August 31, the balance sheet showed Cash $11,739, Accounts Receivable $4,439, Supplies $600, Equipment $6,000, Accounts Payable $6,339, and Owners Capital $16,439. During September, the following transactions occurred.
1. |
| Paid $3,291 cash on accounts payable. |
2. |
| Collected $1,700 of accounts receivable. |
3. |
| Purchased additional office equipment for $1,507, paying $839 in cash and the balance on account. |
4. |
| Earned revenue of $7,467, of which $2,199 is received in cash and the balance is due in October. |
5. |
| Withdrew $1,735 cash for personal use. |
6. |
| Paid salaries $1,748, rent for September $1,076, and advertising expense $271. |
7. |
| Incurred utilities expense for month on account $249. |
| 8. Received $13,413 from Capital Bank (money borrowed on a note payable).
Prepare a tabular analysis of the September transactions beginning with August 31 balances : Cash + Accounts Receivable + Supplies + Equipment = Notes Payable + Accounts Payable + Owner |
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