Question: Refer to Exercise 2 16A Dr Rebecca Gray opened a medical practice

Refer to Exercise 2-16A.
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 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 the revenue earned.
15-31The business paid cash expenses: employee salaries, $3,300; office rent, $1,200; utilities, $900.
31 The business sold supplies to another physician for cost of $700.
31 The business borrowed $35,000, signing a note payable to the bank.
31 The business paid $500 on account.

1. Record the transactions in the journal of Dr. Rebecca Gray, 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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