1.

P1-2A
On August 31, the balance sheet of La Brava 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 equipment for $2,100, paying $800 in cash and the balance on account.
4. Recognized 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.

Instructions

(a) Prepare a tabular analysis of the September transactions beginning with August 31 balances. The column
headings should be as follows: Cash + Accounts Receivable + Supplies + Equipment = Notes Payable + Accounts
Payable + Common Stock + Retained Earnings + Revenues – Expenses – Dividends.

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

SOLUTION

LA BRAVA VETERINARY CLINIC

ASET LIABILITAS EKUITAS
PIUTANG PERLENG PERALAT HUTANG HUTANG MODAL LABA PENDAP
KAS BEBAN DEVIDEN
USAHA KAPAN AN WESEL USAHA SAHAM DITAHAN ATAN
£ 9.000 £ 1.700 £ 600 £ 6.000 £ 3.600 £ 13.000 £ 700
-£ 2.900 -£ 2.900
£ 6.100 £ 1.700 £ 600 £ 6.000 £ 700 £ 13.000 £ 700
£ 1.300 -£ 1.300
£ 7.400 £ 400 £ 600 £ 6.000 £ 700 £ 13.000 £ 700
-£ 800 £ 2.100 £ 1.300
£ 6.600 £ 400 £ 600 £ 8.100 £ 2.000 £ 13.000 £ 700
£ 2.500 £ 4.800 £ 7.300
£ 9.100 £ 5.200 £ 600 £ 8.100 £ 2.000 £ 13.000 £ 700 £ 7.300
-£ 400 -£ 400
£ 8.700 £ 5.200 £ 600 £ 8.100 £ 2.000 £ 13.000 £ 700 £ 7.300 -£ 400
-£ 1.700 -£1.700
-£ 900 -£ 900
-£ 200 -£ 200
£ 5.900 £ 5.200 £ 600 £ 8.100 £ 2.000 £ 13.000 £ 700 £ 7.300 -£2.800 -£ 400
£ 170 -£ 170
£ 5.900 £ 5.200 £ 600 £ 8.100 £ 2.170 £ 13.000 £ 700 £ 7.300 -£2.970 -£ 400
£ 10.000 £ 10.000
£ 15.900 £ 5.200 £ 600 £ 8.100 £ 10.000 £ 2.170 £ 13.000 £ 700 £ 7.300 -£2.970 -£ 400
 LA BRAVA VETERINARY CLINIC
Income Statement
For the Month Ended September 30,2015
INCOME 7300
RENTAL EXPENSES 900
SALARY EXPENSE 1700
ADVERTISING EXPENSES 200
UTILITY EXPENSES 170
TOTAL LOAD 2970
NET PROFIT 4330

LA BRAVA VETERINARY CLINIC

Retained Earnings Statement
For the Month Ended September 30,2015

PROFIT HELD 1 SEP 700

NET PROFIT 4330
5030
DIVIDEND 400
PROFIT HELD 30 SEP 4630
 LA BRAVA VETERINARY CLINIC
Balance Sheet

September 30,2015

ASSETS PASIVA

CURRENT ASSET ACCOUNT PAYABLE 2170

CASH 15900 DEBT NOTES 10000

RECEIVABLES 5200 TOTAL AMOUN OF DEBT 12170

EQUIPMENT 8100 CAPITAL 13000

FIXED ASSETS PROFIT HANDLED 4630

EQUIPMENT 600 TOTAL CAPITAL 17630

TOTAL ASSETS 29800 TOTAL DEBT & CAPITAL 29800