Samantha Luden opened a medical practice titled Samantha Luden M.D., Inc. During March, the first month of
Question:
Samantha Luden opened a medical practice titled Samantha Luden M.D., Inc. During March, the first month of operations, the business experienced the following events:
Mar 2 Luden bought $45,000 of common stock in the business by opening a bank account in the name of Samantha Luden M.D., Inc.
6 The business paid $20,000 cash for land with the intention of building an office building on the land.
11 The business purchased medical supplies for $1,000 on account.
15 The business officially opened for business.
17 The business treated patients and earned service revenue of $11,000, receiving cash.
19 The business paid office rent, $1,700.
22 The business sold supplies to another doctor for $350 cash, the cost of those supplies.
30 The business paid $700 on account related to the March 11 purchase.
Requirement
1. Analyze the effects of these events on the accounting equation of the medical practice of Samantha Luden M.D., Inc. Use headings for Cash, Medical Supplies, Land, Accounts Payable, Common Stock, Service Revenue, and Rent Expense.
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...
Step by Step Answer:
Assets Liabilities Stockholders Equity Cash Medical supplies Land Accounts payable ...View the full answer
