Perez opened a veterinary business in Nashville, on August 1. On August 31, the

Question

Perez opened a veterinary business in Nashville, on August 1. On August 31, the balance sheet showed Cash $9,000, Accounts Receivable $1,700, Supplies $600, Office Equipment $6,000, Accounts Payable $3,600, and Perez, Capital $13,700. During September the following transactions occurred.
1.Paid $2,900 cash on accounts payable.
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 $6,300 of which $2,500 is collected in cash and the balance is due in October.
5.Withdrew $600 in cash for personal use.
6.Paid salaries $1,700, rent for September $900, and advertising expenses $300.
7.Incurred utility expenses for month on account $170.

What are the ending balances at the end of September??

Explanation / Answer

Opening balance Effect of September transactions Ending balance Cash 9,000 -3400 5,600 (-2900+1300-800+2500-600-1700-900-300) Accounts Receivable 1,700 2500 4,200 (-1300+3800) Supplies 600 0 600 Office Equipment 6,000 2100 8,100 2100 Accounts Payable 3,600 -1600 2,000 (-2900+1300) Perez, Capital 13,700 0 13,700 Drawings 0 600 600 Service revenue 0 6300 6,300 Salaries expenses 0 1700 1,700 Rent 0 900 900 Advertising expense 0 300 300 Utilities expense 0 170 170 Utilities payable 0 170 170

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