S2-9 (similar to Susie Varitek, MD, opened a medical practice. The business comp

Question

S2-9 (similar to Susie Varitek, MD, opened a medical practice. The business completed the following transactions: Jul 1 Varitek invested $31,000 cash to start her medical practice. The business issued common stock to Varitek. Purchased medical supplies on account totaling $9,000 Paid monthly office rent of $3,500 Recorded $10,000 revenue (in cash) for service rendered to patients. 2 3 6 After these transactions, how much cash does the business have to work with? Use a T-account to show your answer. Begin by posting the transactions, using the date as a posting reference. Then, label and calculate the ending balance, using "Bal" as the posting reference. Cash Jul 1 Jul 6 Bal Jul 3 Jul 2 Bal

Explanation / Answer

Total cash balance as left is $ 28500 as calculated below

Total 41000   Total 41000

Date particulars Amount ($) Date Particulars Amount ($) July 1 To Varitek Account 31000 July 2 By Purchase of medicines 9000 July 6 To service charges received 10000 July 3 By rent paid 3500 By balance C/d 28500

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