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.

due to the changes the federal reserve is making the unused reserves will impact the economy by them facing inflation. inflation is definfed as the increase in pricing of a good or service but the decline of the value of money used for purchasing those items. when the economy has a high inflation rate, they are subject to money loss and hurt on the economy.

answer; /// the above statement is (false);