101 through PROBLEM 3.5B The Accounting Cycle: Journalizing, Posting, and Preparing a Trial Balance L010 Dr. Cravati, DMD, opened a dental clinic on August 1, 2011. The business transactions for August are shown below: Aug. 1 Dr. Cravati invested $280.000 cash in the business in exchange for 1,000 shares of capital stock Aug, 4 Land and a building were purchased for S400,000. Of this amount, $60,000 applied to the land and S340,000 to the building. A cash payment of $80,000 was made at the time of the purchase, and a note payable was issued for the remaining balance. Aug. 9 Medical instruments were purchased for $75,000 cash. Aug. 16 Office fixtures and equipment were purchased for $25,000. Dr. Cravati paid $10,000 at the time of purchase and agreed to pay the entire remaining balance in 15 days. Aug. 21 Office supplies expected to last several months were purchased for $4,200 cash. Aug. 24 Dr. Cravati billed patients $13,000 for services rendered. Or this amount, $1,000 was received in cash, and $12,000 was billed on account (due in 30 days). Aug. 27 A $450 invoice was received for several newspaper advertisements placed in August The entire amount is due on September 8. Aug. 28 Received a $500 payment on the $12,000 account receivable recorded August 24. Aug. 31 Paid employees $2.200 for salaries earned in August. A partial list of account titles used by Dr. Cravati includes: Cash Office Fixtures and Equipment Accounts Receivable Land Office Supplies Building Notes Payable Service Revenue Accounts Payable Advertising Expense Capital Stock Salary Expense Medical Instruments