The Accounting Cycle: Journalizing, Posting, and Preparing a Trial BalanceDr. Schekter, DV...

May 1

Dr. Schekter invested $400,000 cash in the business in exchange for 5,000 shares of Capital stock.

May 4

Land and a building were purchased for $250,000. Of this amount, $70,000 applied to the land, and $180,000 to the building. A cash payment of$100,000 was made at the time of the purchase, and a note payable was issued for the remaining balance.

May 9

Medical instruments were purchased for $130,000 cash.

May 16

Office fixtures and equipment were purchased for $50,000. Dr. Schekter paid $20,000 at the time of purchase and agreed to pay the entire remaining balance in 15 days.

May 21

Office supplies expected to last several months were purchased for $5,000 cash.

May24

Dr. Schekter billed clients $2,200 for services rendered. Of this amount, $1,900 was received in cash, and $300 was billed on account (due in30days).

May 27

A$400 invoice was received for several radio advertisements aired in May. The entire amount is due on June 5.

May 28

Received a $100 payment on the $300 account receivable recorded May 24.

May 31

Paid employees $2,800 for salaries earned in May.

Cash

Notes Payable

Accounts Receivable

Accounts Payable

Office Supplies

Capital Stock

Medical Instruments

Veterinary Service Revenue

Office Fixtures and Equipment

Advertising Expense

Land

Salary Expense

Building