Practice Exercise Exercise 1: Dr. Schekter, DVM opened a veterinary clinic on May 1. The business transactions for May are shown below. Record Journal Entries. May 1 Dr. Schekter commenced business with a capital of $400,000 May 4 Land and building were purchase for $250,000. Of this amount, $70,000 applied to the land, and $180,000 to the building. A cash payment of $100,000 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 $130,000 cash. May 16 Office fixtures and equipment were purchased for $50,000. Dr.Schekter paid $20,000 at the time of purchase and the entire amount remaining balance in 15 days. May 21 Office supplies expected to last several months were purchased for $5,000 cash. May 24 Dr.Schekter billed clients $2,200 for services rendered. Of this amount, $1,900 was received in cash, and $300 was billed on account(due in 30 days). May 27, $400 paid for advertisement. May 28 Received $100 payment on the $300 account receivable recorded May 24. May 31 Paid employees $2,800 for salaries