The general ledger of Corso Care Corp., a veterinary company, showed the following balances on August 31, 2015: Cash $4,500; Accounts Receivable $1,800; Supplies $350; Equipment $6,500; Accounts Payable $3,200; Common Shares $2,500; and Retained Earnings $7,450. During September, the following transactions occurred:
Sept. 1 Paid the accounts payable owing at August 31.
1 Paid $1,200 rent for September.
3 Collected $1,450 of accounts receivable due from customers.
4 Hired a part-time office assistant at $50 per day to start work the following week, on Monday,
September 7.
5 Received $2,300 cash for issuing common shares to new investors.
8 Purchased additional equipment for $2,050, paying $700 in cash and the balance on account.
14 Billed $500 for veterinary services provided.
15 Paid $300 for advertising expenses.
25 Received $2,500 from Canadian Western Bank; the money was borrowed on a loan payable due in
nine months.
25 Sent a statement reminding a customer that money was still owed from August.
28 Earned revenue of $4,500, of which $3,000 was received in cash. The balance is due in October.
29 Paid part-time office assistant $750 for working 15 days in September.
30 Incurred utility expenses for the month on account, $175.
30 Paid dividends of $500 to shareholders.
30 Paid income tax for the month, $350.
Instructions
(a) Beginning with the August 31 balances, prepare a tabular analysis of the effects of the September transactions on the
expanded accounting equation.
(b) Prepare an income statement, a statement of changes in equity, and a statement of financial position for September.