Respuesta :
Answer:
Brava Veterinary Clinic
a) Tabular Analysis of September Transactions:
see attached.
b1) Income Statement for September:
Service Revenue $7,300
Expenses:
Salaries $1,700
Rent 900
Advertising 200
Utilities 170 ($2,970)
Net Income $4,330
b2) Retained Earnings Statements for September
Net Income $4,330
Beginning Retained Earnings $700
Dividends ($400)
Ending Retained Earnings $4,630
b3) Balance Sheet at September 30:
Assets:
Cash $14,900
Accounts Receivable 6,200
Supplies 600
Equipment 8,100
Total Assets $29,800
Liabilities + Equity:
Accounts Payable $12,170
Common Stock 13,000
Retained Earnings 4,630
Total Liabilities + Equity $29,800
Explanation:
Financial Statements (Income Statement and Balance Sheet) are prepared at the end of a period to show the financial performance (Net Income) and the financial position (Assets = Liabilities + Equity) of a business entity.
A tabular statement of transactions illustrates the changes that have taken place during the period as a result of transactions. Transactions affect the Assets and Liabilities and Equity equally. The excess of revenue over expenses gives a net income.
Answer:
For a better visualization of the answer the first point was attached as an image.
Income Statement
Sales Revenues 7300
Salaries expense (1700)
Rent Expense (900)
Advertising Expense (200)
Utilities expense (170)
Net Income 4,330
Retained Earnings
Beginning 700
Income 4,330
Dividends (400)
Ending 4,630
Balance Sheet
Cash 14,900
Account Receivables 6,200
Supplies 600
Current 21,700
Equipment 8,100
Total Assets 29,800
Liablities
Account Payable 2,170
Note Payable 10,000
Total Liabilities 12,170
Equity
Common Stock 13,000
Retained Earnings 4,630
Total Equity 17,630
Total Liabilities + Equity 29,800
Explanation:
The dividends paid are not considered an expense.
We consider revenues and expense using the accrual basis rather than cash basis so we also recognize accrued expense (utilities ) and accrued revenues (sales which weren't paid right away)
For the Balance sheet the equipment is considered long.temr asset as their usefil life exceed a year.
The note payable while it is different from account payable is also a current liaiblity as it is due within the one-uyear window.
