Question

Fill in the blanks.

*None of the answers in the boxes are correct, only cash (55,000) is correct.

Save Homework: Chapter 1 part B homework Score: 0 of 1 pt 6 of 9 (9 complete) XE1-29 (similar to) HW Score: 79.63%, 7.96 of 10 pts Question Help orked Scon Kira Summers opened a medical practice. During July, the first month of operation, the business, titled Kira Summers, MD, experienced the following events Click the icon to view the transactions) ots: Analyze the effects of these events on the accounting equation of the medical practice of Kara Summers, MD 1230 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 efect 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 separateline in the order presented in the problem Camry down all balances to the "Balline Induding zero balance accounts, entering a for any zero balances Enter a decrease in an account with a minus sign or parentheses Abbreviations used. AP - Accounts Payable: Com Common Contr. - Contributed: Div-Dividends: Exp. - Expense, Liab Liabilities Med Medical Rev Revenue, SalSalaries: Sup. Supplies) 24.si 326 33 (sin Assets Liab. Equity Cont Capital Cash Mod Land AP Com. Dr Retained Earnings Service Sal Ray Exp 15000 1100. Sup Stock Rent Exp. 000 Usilities Exp. 550 55,000 1900) + 52000 - 100900 - 1150 . Enter any number in the edit fields and then click Check Answer 6 parts O remaining Clear All Check Answer

Answer 1

1. Receiving Contribution from Summers and opening a Bank Account in the name of K Summers MD affects the bank account by increasing it by 55000 and increasing the common stock by 55000 in liabilities.

2. Paying 52000 for Land results in reduction of Bank Balance to 3000 i.e., (55000-52000) and increase in asset Land by 52000

3. Purchasing medical supplies on account increases the accounts payable by 1900 and increases inventory by 1900

4. Paying cash expenses amounting to a total of 2450 i.e., (1100+800+550), results in reduction of bank balance to 550 i.e., (3000-2450) and increase in expenses namely employees' salaries, office rent, utilities by 1100, 800, 550 respectively.

5. Earning service revenue increases revenue by 15000 and bank balance by the same amount to 15550 i.e., (550+15000)

6. Paying 1150 on account reduces the accounts payable by 1150 to 750 i.e., (1900-1150) and Bank Balance to 14400 i.e., (15500-1150)

Therefore the equation of the balance sheet would be as follows for each of the transaction in the chronological order

Assets Liabilities Equity Retained Earnings Contribution/Capital Date + Jul-06 + Jul-09 + Jul-12 Cash + Med Sup] + land - AJP - Lon comm Stock - Dividend + | Service Rev) - "Sal Exp - Rent Exp] - Utilities Exp $55,000.00 + DO OD $55,000.00 - OOOOO | $3,000.00 + C + $52,000.00 = C +C $55,000.00 - + C -D C -D $3,000.00 + ($1,900.00 + $52,000.00 = [$1,900.00 + $55,000.00 - O O O O O $550.00 + $1,900.00 + $52,000.00 = $1,900.00 + $55,000.00 - C C -$1,100.00 - $800.00 - $550.00 |$15,550.00] + $1,900.00 + $52,000.00 = $1,900.00] + [ $55,000.00 - + $15,000.00 - $1,100.00 - $800.00 - $550.00 $14,400.00 – $1,900,00) + $52,000.00) = $750.00 + $55,000.00 - - $15,00.00 - $1,100.00 – $800.00 - $550.00 + Jul-20 Jul-31 Jul-31