The general ledger of Corso Care Corp a veterinary

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The general ledger of Corso Care Corp a veterinary company

The general ledger of Corso Care Corp., a veterinary company, showed the following balances
on August 31, 2012: Cash $4,500; Accounts Receivable $1,800; Supplies $350; Equipment
$6,500; Accounts Payable $3,200; Common Shares $2,500; and Retained Earnings $7,450.
During September, the following transactions occurred:

Sept. 1 Paid the accounts payable owing at August 31.

1 Paid $1,200 rent for September.

3 Collected $1,450 of accounts receivable due from customers.

4 Hired a part-time office assistant at $50 per day to start work the following week, on Monday,
September 7.

5 Received $2,300 cash for issuing common shares to new investors.

8 Purchased additional equipment for $2,050, paying $700 in cash and the balance on account.

14 Billed $500 for veterinary services provided.

15 Paid $300 for advertising expenses.

18 Collected cash for services performed on account on September 14.

25 Received $7,500 from Canadian Western Bank; the money was borrowed on a loan payable
due in nine months.

25 Sent a statement reminding a customer that money was still owed from August.

28 Earned revenue of $4,500, of which $3,000 was received in cash. The balance is due in
October.

29 Paid part-time office assistant $750 for working 15 days in September.

30 Incurred utility expenses for the month on account, $175.

30 Paid dividends of $1,000 to shareholders.

30 Paid income tax for the month, $550.

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 Instructions

(a) Beginning with the August 31 balances, prepare a tabular analysis of the effects of the
September transactions on the accounting equation.

(b) Prepare an income statement, a statement of changes in equity, and a statement of financial
position for the month.

The general ledger of Corso Care Corp a veterinary company

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