Question

Jul

6 Cohen invested $149,000 in the business, which in turn issued its common stock to her

9 the business paid cash for land cost in $62,000 calling plans to build an office building on the land

12 The business purchased medical supplies for $1700 on account

15-31 During the rest of the month, Cohen treated patients and arned service revenue of $9,000, recieving cash fo rhalf the revenue earned.15 dr. Christine Cohen, P.C. officially opened for business

15-31 The business paid cash expenses: employee salaries, $3000:office rent, $700: utilities, $1100

31 The business sold supplies to another physician for the cost of $900 and recieved cash

31 The business borrowed $34,000, signing a note payable to the bank

31 The business paid $700 on account

1. After journalizing the transactions in the previous exercise, post the entries to the ledger, using T-accounts. Key transactions by date.

2. Prepare the trial balance of Dr Kristine COhen, P.C., at July 31, 2016.

3. From the trial balance, determine total assets, total liabilities, and total stockholders' equity on July 31.

Requirement 1. Analyze the effects of these events on the accounting equation of the medical practice of Dr.

Cohen​,

Begin with the first transaction on

July

6. ​(Use parentheses or a minus sign when decreasing accounts. If a box is not used in the table leave the box​ empty; do not enter a zero. Enter the transactions in the same order as they appear in the original​ list.)

Assets

=

Liabilities

+

Stockholders' Equity

Accts

Medical

Accts

Note

Common

Retained

Type of Equity

Cash

+

Rec.

+

Supplies

+

Land

=

Pay.

+

Payable

+

Stock

+

Earnings

Transaction

Jul 6

Salary expense

please tell me type of equity: Types of equity transactions: Dividends, Issued Stock, Rent Expense, Salary Expense, Service Revenue, Utilities Expense

Answer 1

Answer:-1. Journal Entries

Date	Particulars	Debit Amount $	Credit Amount $
July 6	Cash dr.	1,49,000
	To capital		1,49,000
July 9	Building Dr.	62,000
	To Cash		62,000
July 12	Medical supplies dr.	1700
	To Accounts Payable		1700
July 15	Cash dr.	4500
	Accounts Receivable dr.	4500
	To Service Revenue		9000
July 31	Salaries dr.	3000
	Office Rent dr.	700
	Utilities dr.	1100
	To Cash		4800
July 31	Cash dr.	900
	To Medical Supplies		900
July 31	Cash dr.	34000
	To Notes payable		34000
July 31	Accounts Payable dr.	700
	To Cash		700

Cash Ledger

Date	Particulars	Dr. Amount $	Date	Particulars	Cr. Amount $
July 6	To Capital a/c	149,000	July 9	By Building a/c	62,000
July 15	To Service Revenue	4,500	July 31	By Accounts Payable	700
July 31	To medical supplies	900	July 31	By salary	3,000
July 31	To Notes Payable	34000	July 31	By Office Rent	700
			July 31	By Utilities	1100
			July 31	By Balance c/d	1,20,900
		1,88,400			1,88,400

Trial Balance

Particulars	Dr. Amount $	Cr. Amount $
Capital		1,49,000
Cash Accounts Payable	1,20,900	1000
Building	62,000
Medical Supplies	800
Accounts Receivable	4,500
Service Revenue		9,000
Salary Expenses	3,000
Office Rent Exp.	700
Utilities Exp	1100
Notes Payable		34,000
Total	1,93,000	1,93,000

Ans 3.1:-   

		Assets			=	Liabilities	+Stock holders	Equity
	Cash	+Account Rec	+Medical supplies	+Land	=	Accou. Payable	+Notes payable	+Common stock	+Retained Earnings
July 6	149000							149000
July 9	-62000			62000
July 12			1700			1700
July 15	4500	4500							9000
July 31	-4800								-4800
July 31	900		-900
July 31	34000						34000
July 31	-700					-700
Total	120900	4500	800	62000		1,000	34,000	149000	4200