Balance Sheet Medical Practices Events
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Caren Smith opened a medical practice. During July, the first month of operation, the business, titled Caren Smith, M.D., experienced the following events:
Jul 6
Smith invested $55,000 in the business by opening a bank account in the name of C. Smith, M.D. The business gave capital to Smith.
Jul 9
Paid $46,000 cash for land.
Jul 12
Purchased medical supplies for $1,800 on account.
Jul 15
Officially opened for business.
Jul 15-31
During the rest of the month, Smith treated patients and earned service revenue of $8,000, receiving cash.
Jul 29
Paid cash expenses: employees' salaries, $1,600; office rent, $900; utilities, $100.
Jul 30
Returned supplies purchased on the 12th for the cost of those supplies, $700.
Jul 31
Paid $1,100 on account.
Requirement
1.Analyze the effects of these events on the accounting equation of the medical practice of Caren Smith, M.D. Use a format similar to that of Exhibit 1-6, with headings for Cash; Medical supplies; Land; Accounts payable; and Smith, capital.
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Solution Summary
The expert examines balance sheet medical practice events.
Education
- Chartered Accountant (Equivalent to CPA in US), Institute of Charted Accountants of India
- Bachelor of Commerce, West Bengal University
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