On August 31, the balance sheet of La Brava Veterinary Clinic showed Cash $11,000, Accounts Receivable $3,700, Supplies $600, Equipment $6,000, Accounts Payable $5,600, Common Stock $14,850, and Retained Earnings $850. During September, the following transactions occurred.

1. Paid $2,350 cash for accounts payable due.
2. Collected $2,000 of accounts receivable.
3. Purchased additional equipment for $3,050, paying $900 in cash and the balance on account.
4. Recognized revenue of $8,100, of which $3,500 is collected in cash and the balance is due in October.
5. Declared and paid a $1,400 cash dividend.
6. Paid salaries $2,300, rent for September $1,100, and advertising expense $100.
7. Incurred utilities expense for month on account $330.
8. Received $14,500 from Capital Bank on a 6-month note payable.

Prepare a tabular analysis of the September transactions beginning with August 31 balances. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. See Illustration 1-8 for example.)

LA BRAVA VETERINARY CLINIC
Assets Liabilities Stockholders' Equity

Cash
+
Accounts
Receivable

See Attached

1. Paid $2,350 cash for accounts payable due  - Cash Decrease, Account Payable Decrease: Equal decrease in Asset and Liabilities

2. Collected $2,000 of accounts receivable  - Cash Increase, Account Receivable Decrease: Neutral Impact on Asset

3.  Purchased additional equipment for $3,050, paying $900 in cash and the balance on account.  - Equipment Increase by 3,050, Cash decrease by 900, Accounts Payable Increase by 2,150: Equal Net Increase in Assets and Liabilities.

4.  Recognized revenue of $8,100, of which $3,500 is collected in cash: Increase in Retained Earnings of 8100, In cash of 3500 and Accounts Receivable of 4600: Equal Increase in Assets and Shareholders Equity

5.  Declared and paid a $1,400 cash dividend: Decrease in Assets and Retained Earnings

6.  Paid salaries $2,300, rent for September $1,100, and advertising expense $100: Decrease in Cash and Retained Earnings

7.  Incurred utilities expense for month on account $330 : Decrease in Retained Earnings and increase in Accounts payable (Liability)

8.  Received $14,500 from Capital Bank on a 6-month note payable  - Increase in Cash and Retained Earnings.

Explanation:

1. Paid $2,350 cash for accounts payable due  - Cash Decrease, Account Payable Decrease: Equal decrease in Asset and Liabilities

2. Collected $2,000 of accounts receivable  - Cash Increase, Account Receivable Decrease: Neutral Impact on Asset

3.  Purchased additional equipment for $3,050, paying $900 in cash and the balance on account.  - Equipment Increase by 3,050, Cash decrease by 900, Accounts Payable Increase by 2,150: Equal Net Increase in Assets and Liabilities.

4.  Recognized revenue of $8,100, of which $3,500 is collected in cash: Increase in Retained Earnings of 8100, In cash of 3500 and Accounts Receivable of 4600: Equal Increase in Assets and Shareholders Equity

5.  Declared and paid a $1,400 cash dividend: Decrease in Assets and Retained Earnings

6.  Paid salaries $2,300, rent for September $1,100, and advertising expense $100: Decrease in Cash and Retained Earnings

7.  Incurred utilities expense for month on account $330 : Decrease in Retained Earnings and increase in Accounts payable (Liability)

8.  Received $14,500 from Capital Bank on a 6-month note payable  - Increase in Cash and Retained Earnings.

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