Question

Refer to Exercises 2-16A and 2-17A.
In Exercises 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.

Requirements
1. After journalizing the transactions of Exercise 2-17A, post the entries to the ledger, using T-accounts. Key transactions by date.
2. Prepare the trial balance of Dr. Rebecca Gray, P.C., at January 31, 2014.
3. From the trial balance, determine total assets, total liabilities, and total stockholders’ equity on January 31.



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  • CreatedJuly 25, 2014
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