Dr. Elyse Burnhart opened a medical practice specializing in physical therapy. D

Question

Dr. Elyse Burnhart opened a medical practice specializing in physical therapy. During the first month of operation (July), the business, titled Dr. Elyse Burnhart, Professional Corporation (P.C.), experienced the following events: Requirement 1. Dr. Elyse Burnhart, P.C. List the transactions by date and give an explanation for each transaction. Jul 6: Burnhart invested $144,000 in the business, which in turn issued its common stock to her. 6 Burnhart invested $144,000 in the business, which in turn issued its common stock to her. 9 The business paid cash for land costing $58,000. Burnhart plans to build an office building on the land. 12 The business purchased medical supplies for $2,400 on account. 15 Dr. Elyse Burnhart, P.C., officially opened for business. 15-31 During the rest of the month, Burnhart treated patients and earned service revenue of $8,900, receiving cash for half the revenue earned. 15-31 The business paid cash expenses: employee salaries, $2,900; office rent, $1,200; utilities, $300. 31 The business sold supplies to another physician for cost of $400. 31 The business borrowed $32,000, signing a note payable to the bank. 31 The business paid $1,000 on account.

Explanation / Answer

Jan-06 Cash 144000       Common Stock 144000 Issued stock to owner. Jan-09 Land 58000      Cash 58000 Purchased land. Jan-12 Medical Supplies 2400         Accounts Payable 2400 Purchased supplies on account. Jan-15 No entry required Jan-31 Accounts Receivable 4450 Cash 4450       Service Revenue 8900 Performed service for cash and on account. Jan-31 Salary Expense 2900 Rent Expense 1200 Utilities Expense 300        Cash 4400 Paid expenses. Jan-31 Cash 400        Medical Supplies 400 Sold supplies. Jan-31 Cash 32000        Note Payable 32000 Borrowed money. Jan-31 Accounts Payable 1000         Cash 1000 Paid on account

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