Question

Dec 6 9 12 15 15-31 Samoa invested $150,000 in the business, which in turn issued its common stock to her. The business paid cash for land costing $64,000. Samoa plans to build an office building on the land. The business purchased medical supplies for $2,400 on account. Dr. Helen Samoa, P.C., officially opened for business. During the rest of the month, Samoa treated patients and earned service revenue of $9,800, receiving cash for half the revenue earned. The business paid cash expenses: employee salaries, $3,600; office rent, $900; utilities, $400. The business sold medical supplies to another physician for cost of $1,000 and received cash. The business borrowed $34,000, signing a note payable to the bank. The business paid $1,300 on account. 15-31 31 31 31

Answer 1

Credit ($) fee solution Journal Entries Date Accounts and Escplanations Debit ($) Cash $150,000 common stock . (to record issued stock to owner) - $ ,000 deca Lana Gash (to record purchase of land) $ 150,000 $6.000 $2,400 béc 12 $2,400 medical supplies . Accounts payable (to record purchased supplies on account) NO Entry Required Dec. is

Dec 31 $4,900 $4,900 Accounts Receivable Cash service revenue (to record performed service for cash and on account) $9,800 I Dec 31 Salary Expense. Rent. Expense Utilities. Expense cash (to record paia esspenses) $3,600 $ 900 $ noo : $4,900 $1,000 Dec 31 $1,000 cash medical supplies (to record sold supplies)

Dec 31 $3hicco cash . $34,000 Note payable (to record Borrowed money) Accounts payable .. $ li 300 cash (to record paid on account) Dec 31 $1,300