Dr. Schekter, DVM, opened a veterinary clinic on May 1, current year. The business transactions for May are shown as follows. 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 9 Medical instruments were purchased for $156,000 cash. May 16 Office fixtures and equipment were purchased for $60,000. Dr. Schekter paid $24,000 at the time of purchase and agreed to pay the entire remaining balance in 15 days. May 21 Office supplies expected to last several months were purchased for $6,000 cash. May 24 Dr. Schekter billed clients $2,640 for services rendered. Of this amount, $2,280 was received in cash, and $360 was billed on account (due in 30 days). May 27 A $480 invoice was received for several radio advertisements aired in May. The entire amount is due on June 5. May 28 Received a $120 payment on the $360 account receivable recorded May 24. May 31 Paid employees $3,360 for salaries earned in May. A partial list of account titles used by Dr. Schekter includes the following. Cash Accounts Receivable Office Supplies Medical Instruments Office Fixtures and Equipment Land Building Notes Payable Accounts Payable Capital Stock Veterinary Service Revenue Advertising Expense Salary Expense 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 T account. 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. Did May appear to be a profitable month? Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E 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. Income Statement Date May 01 Revenue Expenses NE NE Net Income Assets Balance Sheet Liabilities Owners' Equity NE NE May 04 May 09 May 16 May 21 May 24 May 27 May 28 May 31 < Required A Required B > Required A Required B Required C Required D Required E Prepare journal entries for each of the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 9 > Record the issuance of 6,000 shares of capital stock. Note: Enter debits before credits. Date May 01 General Journal Debit Credit Record entry Clear entry View general journal Required A Required B Required C Required D Required E Prepare journal entries for each of the above transactions. (If no entry is required for a transaction/event, select "No journal required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 456789 > Record the entry for purchase of land and building. Note: Enter debits before credits. Date May 04 General Journal Debit Credit Record entry Clear entry View general journal Required A Required B Required C Required D Required E Prepare journal entries for each of the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet < 1 2 3 4 56789 > Record the entry for purchase of medical instruments. Note: Enter debits before credits. Date May 09 General Journal Debit Credit Record entry Clear entry View general journal Required A Required B Required C Required D Required E Prepare journal entries for each of the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 5 6 7 8 9 Record the entry for purchase of fixtures and equipment. Note: Enter debits before credits. Date May 16 General Journal Debit Credit Record entry Clear entry View general journal Required A Required B Required C Required D Required E Prepare journal entries for each of the above transactions. (If no entry is required for a transaction/event, select "No journal ent required" in the first account field.) View transaction list Journal entry worksheet > 1 2 3 4 5 6 7 8 9 Record the entry for purchase of office supplies. Note: Enter debits before credits. Date May 21 General Journal Debit Credit Record entry Clear entry View general journal Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Prepare journal entries for each of the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet > 1 2 3 45 6 7 89 Record the entry for veterinary service revenue earned. Note: Enter debits before credits. Date May 24 General Journal Debit Credit Record entry Clear entry View general journal Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Prepare journal entries for each of the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet < 1 2 3 456 7 8 9 > Record the entry for advertising expense incurred in May. Note: Enter debits before credits. Date May 27 General Journal Debit Credit Record entry Clear entry View general journal Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Prepare journal entries for each of the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 9 Record the entry for cash collected for May 24 services. Note: Enter debits before credits. Date May 28 General Journal Debit Credit Record entry Clear entry View general journal Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Prepare journal entries for each of the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 8 9 Record the entry for payment of May salary expense. Note: Enter debits before credits. Date May 31 General Journal Debit Credit Record entry Clear entry View general journal Required A Required B Required C Required D Required E Post each transaction to the appropriate T account. May 31 Bal. May 31 Bal. May 31 Bal. May 31 Bal. May 31 Bal. Cash Accounts Receivable 0 May 31 Bal. Notes Payable Accounts Payable May 31 Bal. Office Supplies Capital Stock 0 May 31 Bal. Medical Instruments Veterinary Service Revenue 0 Office Fixtures and Equipment 0 May 31 Bal. Advertising Expense May 31 Bal. 0 0 0 0 0 Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Prepare a trial balance dated May 31, current year. DR. SCHEKTER, DVM Trial Balance May 31, Current Year Debit Credit $ 0 $ 0 < Required C Required E > Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Using figures from the trial balance prepared in part d, compute total assets, total liabilities, and owners' equity. Did May appear to be a profitable month? Total assets Total liabilities Total owners' (stockholders') equity < Required D Required E >