Dr. Walter Wong completed the following business transactions during the month of November:
1. Incorporated a veterinary practice by investing (a) $30,000 in cash and (b) equipment worth $20,000.
2. Rented a furnished office and clinic, and paid $1,500 in rent for the month of November.
3. Purchased medical supplies on account, $850.
4. Performed veterinary services and immediately collected $2,400 for the work.
5. Paid for the medical supplies that were purchased in transaction “3.”
6. Provided $700 of additional veterinary services, on account.
7. Used $350 of the medical supplies that were purchased in transaction “3.”
8. Received $500 in partial payment for the services that were provided in transaction “6.”
9. Paid the November telephone bill for the office, $75.
10. Received a bill of $250 for advertising that took place in November, but decided not to pay it until next month when it was due.
11. Paid rent on the office for the months of December and January, totalling $3,200.
Analyze these transactions and show their effects on the basic accounting equation for November, by preparing a table like the one in Exhibit 2-3
Exhibit 2-3

  • CreatedJune 11, 2015
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