Question

/34918/assignments/3638945 Current Attempt in Progress RU A Izabela Ivanhoe opened a medical office under the name Izabela Ivanhoe, MD, on August 1, 2021. On August 31, the balance sheet showed Cash $2,300; Accounts Receivable $2,500; Supplies $488; Equipment $7,000; Accounts Payable $4.270, Note Payable $2,300, and Ivanhoe, Capital, $5,718. During September, the following transactions occurred: Sept. 4 Collected $950 of accounts receivable. 5 Provided services of $10,372, of which $7,000 was collected from patients and the remainder was on account. 7 Paid $1,200 on accounts payable. 12 Purchased additional equipment for $2,583, paying $920 cash and leaving the balance on account. 15 Paid salaries, $3,600; rent for September, $1,919; and advertising expenses, $158. 18 Collected the balance of the accounts receivable from August 31. 20 Withdrew $700 for personal use. 26 Borrowed $2.300 from the Bank of Montreal on a note payable. 28 Signed a contract to provide medical services, not covered under the government health plan, to employees of CRS Corp. in October for $5,300. CRS Corp. will pay the amount owing after the medical services have been provided. 29 Received the telephone bill for September, $335. 30 Billed the government $10.500 for services provided to patients in September Beginning with the August 31 balances, prepare a tabular analysis of the effects of the September transactions on the accounting equation. If a transaction causes a decrease in Assets, Liabilities or Owner's Equity place a negative sign for parentheses) in front of the amount entered for the particular Asset, Lability or Equity item that was reduced. See Illustration 1-13 for example.)

Answer 1

Accounting Equation

Date	Transactions	Assets =				Liabilities +			Capital	Remarks
		Cash	Account Receivables	Supplies	Equipments	Accounts payable	Note payable
31st August 2021	Opening Balances	$ 2,300	$ 2,500	$ 488	$ 7,000	$ 4,270	$ 2,300		$ 5,718
4th September 2021	Collected of account receivables	$ 950	- $ 950
	Sub total =	$ 3,250	$ 1,550	$ 488	$ 7,000	$ 4,270	$ 2,300		$ 5,718
5th September 2021	Services provided and partially cash received and balance was on account.	$ 7,000	$ 3,372						$ 10,372
	Sub total =	$ 10,250	$ 4,922	$ 488	$ 7,000	$ 4,270	$2,300		$ 16,090
7th September 2021	Paid on accounts payable	- $ 1,200				- $ 1,200
	Sub total =	$ 9,050	$ 4,922	$ 488	$ 7,000	$ 3,070	$ 2,300		$ 16,090
12th September 2021	Purchase equipment by cash partially and balance on account	- $ 920			$ 2,583	$ 1,663
	Sub total	$ 8,130	$ 4,922	$ 488	$ 9,583	$ 4,733	$ 2,300		$ 16,090
15th September 2021	Paid salaries ,rent and advertisement explain	- $ 5,677							- $ 5,677
	Sub total	$ 2,453	$ 4,922	$ 488	$ 9,583	$ 4,733	$ 2,300		$ 10,413
18th September 2021	Collected the balance of account receivables from 31st August.	$ 1,550	- $ 1,550
	Sub total	$ 4,003	$ 3,372	$ 488	$ 9,583	$ 4,733	$ 2,300		$ 10,413
20th September 2021	Withdrew for personal use	- $ 700							- $ 700
	Sub total	$ 3,303	$ 3,372	$ 488	$ 9,583	$ 4,733	$ 2,300		$ 9,713
26th September 2021	Borrowed from bank on note payable	$ 2,300					$ 2,300
	Sub total	$ 5,603	$ 3,372	$ 488	$ 9,583	$ 4,733	$ 4,600		$ 9,713
28th September 2021	Sign a contract for future & amount will be received later.									It is a commitment and hence not affect accounting equations
	Sub total	$ 5,603	$ 3,372	$ 488	$ 9,583	$ 4,733	$ 4,600		$ 9,713
29th September 2021	Received the telephone bill					$ 335			- $ 335
	Sub total	$ 5,603	$ 3,372	$ 488	$ 9,583	$ 5,068	$ 4,600		$ 9,378
30th September 2021	Bill the government for the services provided		$ 10,500						$ 10,500
30th September 2021	Final Equation =	$ 5,603	$ 13,872	$ 488	$ 9,583	$ 5,068	$ 4,600		$ 19,878