Refer to Exercise 2-27B.

Requirement
Record the transactions in the journal of Gary Smith, P.C. List the transactions by date and give an explanation for eachtransaction.

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Jul Smith invested $41,000 in the business, which in turn issued its common stock to him. 6 9 The business paid cash for land costing $27,000. Smith plans to build an office building on the land. The business purchased medical supplies for $2,100 on account. Gary Smith, P.С., officially opened for business. During the rest of the month, Smith treated patients and earned service revenue of $8,100, receiving cash for half the revenue earned. The business paid cash expenses: employee salaries, $1,500; office rent, $1,100, utilities, $1,200. The business sold supplies to another physician for cost of $800. The business borrowed $19,000, signing a note payable to the bank. The business paid $1,500 on account. 12 15 15-31 15-31 31 31 31