Maria Gonzalez opened a veterinary business in Nashville, Tennessee, on August 1. On August 31, the balance sheet showed Cash $9,000, Accounts Receivable $1,700, Supplies $600, Office Equipment $6,000, Accounts Payable $3,600, and M. Gonzalez, Capital $13,700. During September the following transactions occurred.

Paid $2,900 cash on accounts payable.

Maria Gonzalez opened a veterinary business in Nashville, Tennessee, on August 1. On August 31, the balance sheet showed Cash $9,000, Accounts Receivable $1,700, Supplies $600, Office Equipment $6,000, Accounts Payable $3,600, and M. Gonzalez, Capital $13,700. During September the following transactions occurred.

To record the transaction of paying cash on accounts payable, follow these steps:

Step 1: Identify the accounts affected by the transaction.
- Cash (asset)
- Accounts Payable (liability)

Step 2: Determine the impact on each account:
- Cash will decrease because cash is being used to pay off a liability.
- Accounts Payable will decrease because a portion of the outstanding balance is being paid.

Step 3: Apply the rules of debit and credit to the accounts:
- To decrease an asset (Cash), you will debit the account.
- To decrease a liability (Accounts Payable), you will credit the account.

Step 4: Record the transaction in a journal entry format:
Date: September X (specific date)
Accounts Payable (credit) - $2,900
Cash (debit) - $2,900

Step 5: Post the journal entry to the general ledger accounts:
- Decrease the balance in the Accounts Payable account by $2,900.
- Decrease the balance in the Cash account by $2,900.

Note: Make sure to update the balance sheet at the end of September to reflect the changes in the respective accounts.

To determine the impact of the transaction on the balance sheet, we need to analyze the accounts affected and adjust the corresponding values.

In this case, the transaction states that $2,900 cash was paid on accounts payable. This means that the accounts payable account will be reduced by $2,900, as payment was made towards the outstanding balance.

To adjust the balance sheet, we decrease the value of Accounts Payable by $2,900 and decrease the value of Cash by $2,900.

Before adjustment:
Accounts Payable: $3,600
Cash: $9,000

After adjustment:
Accounts Payable: $3,600 - $2,900 = $700
Cash: $9,000 - $2,900 = $6,100

So, after paying $2,900 cash on accounts payable, the new balance sheet will show Accounts Payable as $700 and Cash as $6,100.