$3$

Skipped

May $9$ Malance.

May $16$ Offical instruments were purchased for $$156,000$ cash.

pay the entires and equipment were purchased for $$60$

May $21$ Office supplies expected $to$ last several months were

May $16$ Office fixtures and equipment were purchased for $$60,000.$ Dr$.$ Schekter paid $$24,000$ at the time of purchase and agreed to

May $1$ Dr$.$ Schekter invested $$480,000$ cash in the business in exchange for $6,000$ shares of capital stock.

May $4$ Land and a building were purchased for $$300,000.$ Of this amount, $$84,000$ applied to the land, and $$216,000,$ to the building. A cash payment of $$120,000$ was made at the time of the purchase, and a note payable was issued for the remaining

balance.

May $24$ Dr$.$ Schekter billed clients $$2,640$ for for months were purchased for $$6,000$ cash. $$

ebook

May $27$ Account $($due in $30$ days$).$

May $28$ A $$480$ invoice was received for several radio advertisements aired in May. The entire amount is due on June $5.$

May $31$ Paid emped a $$120$ payment on the $$360$ account receivable recorded May $24.$

References

A partial list of account titles used by Dr$.$ Schekter includes the following:

Cash

Notes Payable

Accounts Receivable

Accounts Payable

Office Supplies

Capital Stock

Medical Instruments

Veterinary Service Revenue

Office Fixtures and Equipment

Advertising Expense

Land

Salary Expense

Building

Required:

a$.$ Analyze the effects that each of these transactions will have on the following six components of the company's financial statements for the month of May. Select I for increase, D for decrease, and NE for no effect in the column headings below to show the effects of the above transactions. The May $1$ transaction is provided for you.

b$.$ Prepare journal entries for each of the above transactions.

c$.$ Post each transaction to the appropriate ledger accounts.

d$.$ Prepare a trial balance dated May $31,$ current year.

e$.$ Using figures from the trial balance prepared in part d$,$ compute total assets, total liabilities, and owners' equity.

e$-1$ Did May appear to be a profitable month?