Q1. Joe Tiede open Tiede Company, a veterinary business in Neosho, Wisconsin, on August 1, 2102. On August 31, the balance sheet showed: [1] Cash $9,000 [2] Account Receivable $ 1,700 [3] Suppl

Q1. Joe Tiede open Tiede Company, a veterinary business in Neosho, Wisconsin, on August 1, 2102. On August 31, the balance sheet showed:

[1] Cash $9,000

[2] Account Receivable $ 1,700

[3] Supplies $600

[4] Equipment $5,000

[6] Account Payable $3,600

[7] Common Stock $ 12,000

[8] Retained Earnings $700

During September, the following transactions occurred.

Sept 2 Paid $3,400 cash for accounts payable due

5 Received $1,200 from customers in payment of accounts receivable.

8 Purchased additional office equipment for $5,100, paying $1,000 in cash and the balance on

account.

13 Earned revenue of $10,000, of which $2,300 is paid in cash and the balance is due in October.

17 Paid a $600 cash dividend.

22 Paid salaries $900, rent for September $1,100, and advertising expense $250.

26 Incurred utility expenses for the month on account $220.

30 Received $5,000 from Hilldale Bank on a 6-month note payable.

Instructions:

(a) Prepare a tabular analysis of the September transactions beginning with August 31 balance. The column heading be : Cash + Accounts Receivable + Supplies + Equipment = Note Payable + Accounts Payable + Common Stock + Common Stock + Retained Earnings + Revenues – Expenses – Dividends. Include margin explanations from any change in Retained Earnings.

(b) Prepare an income statement for September, a retained earnings statement for September, and a classified balance sheet at September 30, 2012.

(c) Please use the format as the discussion in class to classify each transaction.

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