The general ledger of Corso Care Corp., a veterinary company, showed these balances on August 31, 2018: 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. 4 Paid the accounts payable owing at August 31.

4 Paid $1,200 rent for September.

5 Collected $1,450 of accounts receivable due from customers.

6 Hired a part-time office assistant at $50 per day to start work the following week, on Monday, September 10.

7 Received $2,300 cash for issuing common shares to new investors.

10 Purchased additional equipment for $2,050, paying $700 in cash and the balance on account.

12 Billed customers $500 for veterinary services provided.

14 Paid $300 for advertising expenses.

17 Received $2,500 from Canadian Western Bank; the money was borrowed on a bank loan payable due in nine months.

18 Sent a statement reminding a customer that money was still owed from August.

20 Earned veterinary service revenue of $4,500, of which $3,000 was received in cash. The balance is due in October.

21 Paid part-time office assistant $750 for working two weeks in September.

26 Received a bill for utility expenses in the amount of $175; it is not due until October 15.

27 Declared and paid $500 of dividends to shareholders

28 Paid income tax for the month, $350.

Instructions

(a) Beginning with the August 31 balances, prepare an equation analysis of the effects of the opening balances and above transactions on the expanded accounting equation, similar to those shown in Illustrations 3.3 and 3.4.

(b) Prepare an income statement, a statement of changes in equity, and a statement of financial position for September.