Question

The infamous Hollywood liposuctionist, Dr. Tommy Tucker, has opened a new clinic in Beverly Hills on April 1,1999. From the following transactions, please prepare an operations statement and balance sheet

1. Dr Tucker puts $100,000 of his own money into the clinic  

2. Dr Tucker prepaid his advertising in the amount of $9,500

3. Advertising expense for the month was $4,375

4. He purchased equipment for $50,000 in cash

5. Depreciation expense on the equipment was $400

6. Dr. Tucker received a bill for $4,000 for remodeling

7. He paid $2,000 of his remodeling bill

8. He billed his patients for $87,205

9. He recognized that $5,600 of the amount billed would probably not be collected

10. His patients paid $77,000 of the amount they were billed

11. Salaries amounted to $26,000 of which he has paid $22,500

12. Utility bills equaled $7,500 of which $5,675 has been paid

13. Office supplies purchased equaled $450 of which $435 has been used

Answer 1