Women’s Health Care, Inc. is owned and operated by Dr. Carrie Mills, the sole st

Question

Women’s Health Care, Inc. is owned and operated by Dr. Carrie Mills, the sole stockholder. During January 2010, Women’s Health Care engaged in the following external transactions:
1 Leased vacant space in the building to a law firm for 6 months, receiving the rent in advance, $9600.
1 Paid premium on a 1-year insurance policy, $4800.
1 Paid rent for the month on medical equipment, $4200.
7 Collected $21,900 on account from patients.
9 Purchased supplies on account, $1140.
10 Received $55,000 from Dr. Mills in exchange for common stock.
14 Paid vendors on account, $1920.
20 Provided services to patients, receiving cash at the time of service, $8200.
25 Billed patients for services provided on account, $29,700.
26 Paid utilities for the month, $925.
27 Paid miscellaneous expenses, $780.
28 Paid wages, $18,120.
31 Paid dividends to Dr. Mills, $10,000. (We have not yet covered how to journalize this transaction. Omit the transaction analysis, and record the journal entry as a debit to Dividends Declared and a credit to Cash. You should be able to complete the financial statement analysis. )

Explanation / Answer

Particulars Debit Credit Cash A/C…….Dr          To Advance rent 9,600.00 9,600.00 Preimum paid A/C…….Dr          To Cash 4,800.00 4,800.00 Rent A/C…….Dr          To Cash     4,200.00 4,200.00 Cash A/c…..Dr          To Revenue 21,900.00 21,900.00 Supplies A/c…..Dr     To Accounts Payable   1,140.00 1,140.00 Cash A/c…Dr     To Common stock 55,000.00 55,000.00 Accounts payable A/c…Dr     To Cash 1,920.00 55,000.00 Cash A/c…Dr     To Accounts Receivable 8,200.00 8,200.00 Utilities A/c…Dr     To Cash 925.00 925.00

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