Question

Kira Sansone opened a medical practice. During July, the first month of operation, the business, titled Kira Sansone, 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 Kira Sansone, 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 "0" 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 - X Contr. Capital + Com. - Stock Cash + Land = A/P + Div. Retained Earnings + Service - Sal. - Rent Rev. Exp. Exp. + Med. Sup. - Utilities Exp. 716 COOOOOOOOO Jul. 6 Received a contribution of $48,000 from Sansone and opened a bank account in the name of K. Sansone, MD. The corporation issued common stock to Sansone. 9 Paid $38,000 cash for land. 12 Purchased medical supplies for $1,600 on account. 15 Officially opened for business. 20 Paid cash expenses: employees' salaries, $1,400; office rent, $1,300; utilities, $150. 31 Earned service revenue for the month, $12,000, receiving cash. 31 Paid $1,060 on account. Print Done

Answer 1

Assets Liabilities Equity Cont. Capital Retained earnings Common Service Salaries + stock - Dividends + revenue expense + $48,000.00 - Rent Utilities expense Land A/P expense $ 38,000.00 $ 1,600.00 Cash + Med Sup + 06-Jul $ 48,000.00 + 09-Jul $-38,000.00 12-Jul + $1,600.00 + 15-Jul 20-Jul $ -2,850.00 31-Jul $ 12,000.00 31-Jul $ -1,060.00 $ 18,090.00 + $ 1,600.00 + - $1,400.00 - $1,300.00 - $ 150.00 $ 12,000.00 = $ 38,000.00 = $-1,060.00 $ 540.00 + $ 48,000.00 - $ + $ 12,000.00 - $1,400.00 - $1,300.00 - $ 150.00