(Learning Objective 5: Record (journalize) transactions in the books)
Dr. Rebecca Gray opened a medical practice specializing in physical therapy. During the first month of operation (January), the business, titled Dr. Rebecca Gray, Professional Corporation (P.C.), experienced the following events:
jan 16 6 Gray invested $150,000 in the business, which in turn issued its common stock to her
9. The business paid cash for land costing $63,000, Gray plans to build an office building on the land
12 The business purchased medical supplies for $1,900 on account
15 Dr rebecca gray p c officially opened for business
15-31 during the rest of the month , gray treated patients and earned service revenue of $9,600 receiving cash for half of the revenue earned
15- 31 The business paid cash expenses, employee salaries, $3,000, office rent ,$1,200,utilities, 900
31 The business sold suplies to another physician for the cost of $700
31 The business borrowed $35,000, signing a note payable to the bank
31 The business paid $500 on account.
Requirements
Analyze the effects of these events on the accounting equation of the medical practice of Dr. Rebecca Gray, P.C.
After completing the analysis, answer these questions about the business.
How much are total assets?
How much does the business expect to collect from patients?
How much does the business owe in total?
How much of the business’s assets does Gray really own?
How much net income or net loss did the business experience during its first month of operations?
(Learning Objective 5: Record (journalize) transactions in the books) Refer to Exercises 2-16A.
Requirement
Record the transactions in the journal of Dr. Rebecca Gray, P.C. List the transactions by date and give an explanation for each transaction.