Question

Refer to Exercise 2-26B.
Fred Grimes opened a medical practice specializing in surgery. During the first month of operation (March), the business, titled Dr. Fred Grimes, Professional Corporation (P.C.), experienced the following events:
Mar 6 Grimes invested $40,000 in the business, which in turn issued its common stock to him.
9 The business paid cash for land costing $21,000. Grimes plans to build an office building on the land.
12 The business purchased medical supplies for $3,500 on account.
15 Dr. Fred Grimes, P.C., officially opened for business.
15–31 During the rest of the month, Grimes treated patients and earned service revenue of $20,100, receiving cash for half the revenue earned.
15–31 The business paid cash expenses: employee salaries, $7,500; office rent, $2,400; utilities, $3,600.
31 The business sold supplies to another physician for cost of $920.
31 The business borrowed $32,000, signing a note payable to the bank.
31 The business paid $500 on account.

Requirement
1. Record the transactions in the journal of Dr. Fred Grimes, P.C. List the transactions by date and give an explanation for each transaction.



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  • CreatedJuly 25, 2014
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