Wiley Plus - Problem 1-2A (Part Level Submission)

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 collected 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.