On August 31, the balance sheet of Donahue Veterinary Clinic showed Cash $9,000,

Question

On August 31, the balance sheet of Donahue Veterinary Clinic showed Cash $9,000, Accounts Receivable $1,700, Supplies $600, Equipment $6,000, Accounts Payable $3,600, Common Stock $13,000, and Retained Earnings $700. During September, the following transactions occurred. 1. Paid $2,900 cash for accounts payable due. 2. Collected $1,300 of accounts receivable. 3. Purchased additional office equipment for $2,100, paying $800 in cash and the balance on account. 4. Earned revenue of $7,300, of which $2,500 is paid in cash and the balance is due in October. 5. Declared and paid a $400 cash dividend 6. Paid salaries $1,700, rent for September $900, and advertising expense $200. 7. Incurred utilities expense for month on account $170. 8. Received $10,000 from Capital Bank on a 6-month note payable.

Explanation / Answer

Hi, If you like my answer, please rate my answer first and according to my answer...that way only I can earn points. Thanks On August 31, the balance sheet of Donahue Veterinary Clinic showed Cash $9,000, Accounts Receivable $1,700, Supplies $600, Equipment $6,000, Accounts Payable $3,600, Common Stock $13,000, Retained Earnings $700. During September, the following transactions occurred. 1. Paid $2,900 cash for accounts payable due. Account payable...Dr = $2900 Cash.. CR = $2900 2. Collected $1,300 of accounts receivable. Cash... Dr = $1300 Account Receivable..Cr = 1300 3. Purchased additional office equipment for $2,100, paying $800 in cash and the balance on account. Office Equipment.. DR = $2100 Cash..Cr = $800 Accrued Expense... Cr = $1300 4. Earned revenue of $7,300, of which $2,500 is paid in cash and the balance is due in October. Revenue...Cr = $7300 Cash..Dr = $2500 Accounts Receivable... Dr=4800 5. Declared and paid a $400 cash dividend Dividend ..Dr = $400 Cash.. Cr = $400 6. Paid salaries $1,700, rent for September $900, and advertising expense $200. Salaries...Dr = $1700 Rent..Dr = $900 Advertising ...Dr = $200 Cash.. CR = $2800 7. Incurred utilities expense for month on account $170. Expenses...Dr = $170 Accrued Expenses..Cr = $170 8. Received $10,000 from Capital Bank on a 6-month note payable. Cash...Dr =$10000 Notes-payable..CR =$10000

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