Roxanne Chester graduated from dental school in May 2013 and has decided to launch a practice called "Surf Smiles, Inc." Her family thinks she should join an existing practice since she will have to learn a lot of business skills, but that just serves to annoy Roxanne since she thinks figuring out ledger entries can't be any harder than getting adults to floss their teeth daily or endodontic surgery (root canal). Besides, she wants the company to be located near a beach. The transactions of her company in May are as follows:

1. Analyze the transactions in terms of their effect on the accounting equation.
2. Develop an income statement and balance sheet for this new business.
3. Is this business doing well?

Transcribed Image Text:

May transactions 1st 4th Roxanne used the last $2,250 of her college loans to form SSI Purchased office supplies and medical supplies for $1,200 in cash Purchased $18,250 in medical equipment on credit with 5% down 21st Performed routine cleaning and consult with her first patient for $95 on credit Paid $75 for the first payment on her medical equipment (from May 18th) 30th Paid her office electric bill of $40