Samantha Stamford opened a medical practice. During July, the first month of operation, the business, titled Samantha

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Samantha Stamford opened a medical practice. During July, the first month of operation, the business, titled Samantha Stamford, M.D., experienced the following events:
July 6 Stamford contributed $65,000 in the business by opening a bank account in the name of S. Stamford, M.D. The corporation issued common stock to Stamford.
9 Paid $52,000 cash for land.
12 Purchased medical supplies for $ 1,600 on account.
15 Officially opened for business.
20 Paid cash expenses: employees' salaries, $1,500; office rent, $1,300; utilities, $350.
31 Earned service revenue for the month, $8,000, receiving cash.
31 Paid $800 on account.
Analyze the effects of these events on the accounting equation of the medical practice of Samantha Stamford, M.D., using the following format:
Samantha Stamford opened a medical practice. During July, the first
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...
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Horngrens Financial and Managerial Accounting

ISBN: 978-0133866292

5th edition

Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura

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