Refer to exercise 2-30B.
In exercise 2-30B.
Sue Smith opened a medical practice specializing in surgery. During the first month of operation (May), the business, titled Dr. Sue Smith, Professional Corporation (PC), experienced the following events:
May 6 Smith invested $148,000 in the business, which in turn issued its common stock to her.
9 The business paid cash for land costing $59,000. Smith plans to build an office building on the land.
12 The business purchased medical supplies for $1,700 on account.
15 Sue Smith, P.C., officially opened for business.
15-31 During the rest of the month, Smith treated patients and earned service revenue of $9,000, receiving cash for half the revenue earned.
15-31 The business paid cash expenses: employee salaries, $3,200; office rent, $1,100; utilities, $1,200.
31 The business sold supplies to another physician for cost of $300 and received cash.
31 The business borrowed $32,000, signing a note payable to the bank.
31 The business paid $1,300 on account.
Requirement
1. Record the transactions in the journal of Dr. Sue Smith, RC. List the transactions by date and give an explanation for each transaction.