Q1. Joe Tiede open Tiede Company, a veterinary business in


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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. seanmi
posted a question · Oct 07, 2013 at 9:54pm

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