Espresso Health Care Inc. is owned and operated by Dr.

Espresso Health Care Inc. is owned and operated by Dr. Merri Eversole, the sole stockholder. During July 2011, Espresso Health Care entered into the following transactions:

July 1 Received $18,000 from Bradshaw Company as rent for the use of a vacant office in Espresso Health Care's building. Bradshaw paid the rent six months in advance.

1 Paid $4,200 for an insurance premium on a general business policy.

6 Purchased supplies of $1,800 on account.

9 Collected $17,500 for services provided to customers on account.

11 Paid creditors $3,000 on account.

18 Invested an additional $50,000 in the business in exchange for capital stock.

20 Billed patients $49,000 for services provided on account.

25 Received $12,900 for services provided to customers who paid cash.

30 Paid expenses as follows: wages, $24,000; utilities, $6,000; rent on medical equipment, $5,000; interest, $200; and miscellaneous, $2,500.

30 Paid dividends of $10,000 to stockholders (Dr. Eversole).


Instructions


Analyze and record the July transactions for Espresso Health Care Inc., using the integrated financial statement framework. Record each transaction by date and show the balance for each item after each transaction. The July 1, 2011, balances for the balance sheet are shownbelow.

Stockholders' Liabilities Assets Equity Ret. Accts. Un. Wages Notes Capital + Stock + Earn. Accts. Pre. Acc. + Rec. + In
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...

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