Refer to exercises 2-30B and 2-31B.
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.
Requirements
1. Post the entries to the ledger, using T-accounts. Key transactions by date.
2. Prepare the trial balance of Dr. Sue Smith, P.C, at May 31, 2016.
3. From the trial balance, determine total assets, total liabilities, and total stockholders' equity on May 31.