Ashley Stamper opened a medical practice. During July, the first

Ashley Stamper opened a medical practice. During July, the first month of operation, the business, titled Ashley Stamper, MD, experienced the following events:

Jul. 6 Received a contribution of $68,000 from Stamper and opened a bank account in the name of A. Stamper, MD. The corporation issued common stock to Stamper.

9 Paid $56,000 cash for land.

12 Purchased medical supplies for $1,500 on account.

15 Officially opened for business.

20 Paid cash expenses: employees' salaries, $1,300; office rent, $1,500; utilities, $100.

31 Earned service revenue for the month, $13,000, receiving cash.

31 Paid $1,050 on account.

Analyze the effects of these events on the accounting equation of the medical practice of Ashley Stamper, MD, using the following format:

LIABILITIES + ASSETS EQUITY Contributed Capital + + Common Retained Earnings Salaries Expense Expense Expense + Medical
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...