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.

Paid $2,900 cash for accounts payable due.

Collected $1,300 of accounts receivable.

Purchased additional equipment for $2,100, paying $800 in cash and the balance on account.

Recognized revenue of $7,300, of which $2,500 is collected in cash and the balance is due in October.

Declared and paid a $400 cash dividend.

Paid salaries $1,700, rent for September $900, and advertising expense $200.

Incurred utilities expense for month on account $170.

Received $10,000 from Capital Bank on a 6-month note payable.

Instructions

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.

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