FIRST MONTH OF BUSINESS Feb 1. Sample invested $55,000 in the business by depositing it...
FIRST MONTH OF BUSINESS
Feb 1. Sample invested $55,000 in the business by depositing it into the company’s bank account.
Feb 2. Paid $46,000 cash for land.
Feb 3. Purchased medical supplies for $1,800 on account.
Feb 4. Officially opened for business.
Feb 5. During the month, Sample treated patients and earned service revenue of $8,000, receiving cash.
Feb 6. Paid cash expenses: employees’ salaries, $1,600; office rent, $900;utilities, $100.
Feb 7. Returned supplies purchased on the 3rd for the cost of those supplies, $700.
Feb 8. Paid $1,100 on account for purchases made on Feb 3.
Requirement:
- Analyze the effects of these events on the accounting equation of the sports clinic. For example, the transaction increased asset and increased capital; the transaction increased expenses and decreased cash; the transaction increased asset and decreased asset; etc.
- Prepare the journal entries to record the above transactions.
- Post the transaction to the “T” accounts of the company and balance off each account.
Homework Answers
1.
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FIRST MONTH OF BUSINESS
Feb 1.
Sample
invested $55,000 in the business by depositing it...
Feb 1. Sample invested $55,000 in the business by depositing it into the company’s bank...
Feb 1. Sample invested $55,000 in the business by depositing it into the company’s bank account. Feb 2. Paid $46,000 cash for land. Feb 3. Purchased medical supplies for $1,800 on account. Feb 4. Officially opened for business. Feb 5. During the month, Sample treated patients and earned service revenue of $8,000, receiving cash. Feb 6. Paid cash expenses: employees’ salaries, $1,600; office rent, $900; utilities, $100. Feb 7. Returned supplies...
Feb 1. Sample invested $55,000 in the business by depositing it into the company’s bank...
Feb 1. Sample invested $55,000 in the business by depositing it into the company’s bank account. Feb 2. Paid $46,000 cash for land. Feb 3. Purchased medical supplies for $1,800 on account. Feb 4. Officially opened for business. Feb 5. During the month, Sample treated patients and earned service revenue of $8,000, receiving cash. Feb 6. Paid cash expenses: employees’ salaries, $1,600; office rent, $900; utilities, $100. Feb 7. Returned supplies...
Feb 1. Sample invested $55,000 in the business by depositing it into the company’s bank...
Feb 1. Sample invested $55,000 in the business by depositing it into the company’s bank account. Feb 2. Paid $46,000 cash for land. Feb 3. Purchased medical supplies for $1,800 on account. Feb 4. Officially opened for business. Feb 5. During the month, Sample treated patients and earned service revenue of $8,000, receiving cash. Feb 6. Paid cash expenses: employees’ salaries, $1,600; office rent, $900; utilities, $100. Feb 7. Returned supplies...
Selected transactions for L. Takemoto, an interior decorating firm, in its first month of business, are...
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Jan. 2
Invested $15,000 cash in the business in exchange for common
stock.
3
Purchased used car for $8,200 cash for use in the
business.
9
Purchased supplies on account for $500.
11
Billed customers $1,800 for services performed.
16
Paid $200 cash for advertising.
20
Received $780 cash from customers billed on January 11.
23
Paid creditor $300 cash on balance...
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Transactions
On June 1 of the current year, Pamela Schatz established a
business to manage rental property. She completed the following
transactions during June:
Opened a business bank account with a deposit of $55,000 from
personal funds.
Purchased office supplies on account, $3,300.
Received cash from fees earned for managing rental property,
$18,300.
Paid rent on office and equipment for the month, $8,300.
Paid creditors on account, $2,290.
Billed customers for fees earned for managing rental property,
$30,800.
Paid automobile...
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Dr. Elyse Burnhart opened a medical practice. During the first month of operations (October), the business, named Dr. Elyse Burnhart, Professional Corporation (P.C.), had the following events: (Click the icon to view the events.) Calculate total assets, total liabilities, and total stockholders' equity of the business on October 31. Data Table - X Total assets ............................ Total liabilities .......................... Total stockholders' equity ..... Oct 6 9 12 15 15-31 Burnhart invested $140,000 in the business, which in turn issued its...
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Selected transactions for Front Room, an interior decorator corporation, in its first month of business, are...
Selected transactions for Front Room, an interior decorator corporation, in its first month of business, are as follows. 1. 2. 3. 4. 5. 6. 7. 8. Issued stock to investors for $13,000 in cash. Purchased used car for $10,000 cash for use in business. Purchased supplies on account for $200. Billed customers $3,700 for services performed. Paid $100 cash for advertising start of the business. Received $1,100 cash from customers billed in transaction (4). Paid creditor $150 cash on account....
Selected transactions for L. Takemoto, an interior decorating
firm, in its first month of business, are as follows.
Jan. 2
Invested $15,000 cash in the business in exchange for common
stock.
3
Purchased used car for $8,200 cash for use in the
business.
9
Purchased supplies on account for $500.
11
Billed customers $1,800 for services performed.
16
Paid $200 cash for advertising.
20
Received $780 cash from customers billed on January 11.
23
Paid creditor $300 cash on balance...
Selected transactions for Front Room, an interior decorator corporation, in its first month of business, are as follows. 1. 2. 3. 4. 5. 6. 7. 8. Issued stock to investors for $14,600 in cash. Purchased used car for $10,100 cash for use in business. Purchased supplies on account for $340. Billed customers $5.510 for services performed Paid $150 cash for advertising start of the business Received $1,100 cash from customers billed in transaction (4) Paid creditor $420 cash on account....
Transactions
On June 1 of the current year, Pamela Schatz established a
business to manage rental property. She completed the following
transactions during June:
Opened a business bank account with a deposit of $55,000 from
personal funds.
Purchased office supplies on account, $3,300.
Received cash from fees earned for managing rental property,
$18,300.
Paid rent on office and equipment for the month, $8,300.
Paid creditors on account, $2,290.
Billed customers for fees earned for managing rental property,
$30,800.
Paid automobile...
Dr. Elyse Burnhart opened a medical practice. During the first month of operations (October), the business, named Dr. Elyse Burnhart, Professional Corporation (P.C.), had the following events: (Click the icon to view the events.) Calculate total assets, total liabilities, and total stockholders' equity of the business on October 31. Data Table - X Total assets ............................ Total liabilities .......................... Total stockholders' equity ..... Oct 6 9 12 15 15-31 Burnhart invested $140,000 in the business, which in turn issued its...
Dr. Elyse Burnhart opened a medical practice. During the first month of operations (October), the business, named Dr. Elyse Burnhart, Professional Corporation (P.C.), had the following events: (Click the icon to view the events.) Calculate total assets, total liabilities, and total stockholders' equity of the business on October 31. Data Table - X Total assets ............................ Total liabilities .......................... Total stockholders' equity ..... Oct 6 9 12 15 15-31 Burnhart invested $140,000 in the business, which in turn issued its...
Lauren Steinbeck opened a medical practice. During July, the first month of operation, the business, titled Lauren 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 Lauren 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...
Selected transactions for Front Room, an interior decorator corporation, in its first month of business, are as follows. 1. 2. 3. 4. 5. 6. 7. 8. Issued stock to investors for $13,000 in cash. Purchased used car for $10,000 cash for use in business. Purchased supplies on account for $200. Billed customers $3,700 for services performed. Paid $100 cash for advertising start of the business. Received $1,100 cash from customers billed in transaction (4). Paid creditor $150 cash on account....
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