Steve Young decides to open a Therapy Clinic, the following transactions occurred during August: Aug. 1 Steve
Question:
Steve Young decides to open a Therapy Clinic, the following transactions occurred during August:
Aug. 1 Steve Young invested $40,000 cash in to start the business.
Equipment was purchased at a cost of $7,000; a three-month, 10% note payable was signed for this amount.
Billed Mary Johns $14,000 for services preformed.
Purchased supplies from Low’s Co. for $1,500 payable in 15 days.
13 Received $11,000 from Mary Johns.
15 Steve Young withdrew $2,000 for personal expenses.
20 Paid Low’s Co. for supplies purchased on Aug. 5th.
26 Sue Lewis, Young’s administrative assistant, was paid $1,800 cash for her salary.
Instructions:
Analyze above transactions for the month of August in expanded accounting equation.
Journalize those transactions
Introduction to Management Accounting
ISBN: 978-0133058789
16th edition
Authors: Charles Horngren, Gary Sundem, Jeff Schatzberg, Dave Burgsta