Question

Caren Steinbeck opened a medical practice. During July, the first month of operation, the business, titled Caren Steinbeck, MD, experienced the following events: (Click the icon to view the transactions.) Analyze the effects of these events on the accounting equation of the medical practice of Caren Steinbeck, MD. Analyze the events chronologically, one transaction at a time, beginning with the transaction on the 6th. For each transaction that follows the transaction on the 6th, calculate the balance in each account after analyzing its effect on the accounting equation. (Complete only the necessary answer boxes for your transaction lines. [Do not enter any zeros for your transaction lines.] For transactions with the same date, be sure to enter each transaction on a separate line in the order presented in the problem. Carry down all balances to the "Bal." line, including zero balance accounts, entering a "O" for any zero balances. Enter a decrease in an account with a minus sign or parentheses. Abbreviations used: A/P = Accounts Payable; Com. = Common; Contr. = Contributed: Div. = Dividends; Exp. = Expense; Liab. = Liabilities; Med. = Medical; Rev. = Revenue: Sal. = Salaries; Sup. = Supplies.) Assets = Liab. Equity i More Info Contr. Capital + Com. - Stock Cash + Med. + Land = AJP + Div. + Retained Earnings Service Sal - Rent Rev. Exp. Exp. - Utilities + + + + + + Jul 6 Received a contribution of $65.000 from Steinbeck and opened a bank account in the name of C. Steinbeck, MD. The corporation issued common stock to Steinbeck. 9 Paid $35,000 cash for land. 12 Purchased medical supplies for $2,600 on account. 15 Officially opened for business. 20 Paid cash expenses: employees' salaries, $1,500; office rent, $800; utilities, $200. 31 Earned service revenue for the month. $15,000, receiving cash. 31 Pald $1,700 on account. + + + + + + + + + Print Done Enter any number in the edit fields and then continue to the next question.

Answer 1

											Retained Earnings
Trans.	Cash	+	Med. Dup.	+	Land	=	A/P	+	Common Stock	-	Div.	+	Service Rev.	-	Sal. Exp.	-	Rent Exp.	-	Utilities Exp.
7/6	$65,000	+		+		=		+	$65,000	-		+		-		-		-
7/9	-$35,000	+		+	$35,000	=		+		-		+		-		-		-
Bal.	$30,000	+		+	$35,000	=		+	$65,000	-		+		-		-		-
7/12		+	$2,600	+		=	$2,600	+		-		+		-		-		-
Bal.	$30,000	+	$2,600	+	$35,000	=	$2,600	+	$65,000	-		+		-		-		-
7/15	No Effect	+		+		=		+		-		+		-		-		-
Bal.	$30,000	+	$2,600	+	$35,000	=	$2,600	+	$65,000	-		+		-		-		-
7/20	-$2,500	+		+		=		+		-		+		-	$1,500	-	$800	-	$200
Bal.	$27,500	+	$2,600	+	$35,000	=	$2,600	+	$65,000	-		+		-	$1,500	-	$800	-	$200
7/31	$15,000	+		+		=		+		-		+	$15,000	-		-		-
Bal.	$42,500	+	$2,600	+	$35,000	=	$2,600	+	$65,000	-		+	$15,000	-	$1,500	-	$800	-	$200
7/31	-$1,700	+		+		=	-$1,700	+		-		+		-		-		-
Bal.	$40,800	+	$2,600	+	$35,000	=	$900	+	$65,000	-		+	$15,000	-	$1,500	-	$800	-	$200