Record the transactions in the journal of Dr. Ansley Favata, P.C. List the transactions by date and give an explanation for each transaction. Jul 6Jul 9Jul 12Jul 15Jul 15-31Jul 15-31Jul 31Jul 31Jul 31JulDateJulFavata invested $139,000 in the business, which in turn issued itscommon stock to her.Jul 6: Favata invested $139,000 in the business, which in turn issued its common stock to her.The business paid cash for land costing $61,000. Favata plans to buildan office building on the land.The business purchased medical supplies for $2,000 on account.Dr. Ansley Favata, P.C., officially opened for business.DateDuring the rest of the month, Favata treated patients and earnedservice revenue of $9,400, receiving cash for half the revenue earned.The business paid cash expenses: employee salaries, $2,400; officerent, $600; utilities, $1,800.The business sold medical supplies to another physician for cost of$100 and received cash.The business borrowed $39,000, signing a note payable to the bank.The business paid $1,100 on account.Journal EntryAccounts and ExplanationsJul 9: The business paid cash for land costing $61,000. Favata plans to build an office building on the land.DebitJournal EntryAccounts and ExplanationsCreditDebitCredit

Jul 6 Jul 9 Jul 12 Jul 15 Jul 15-31 Jul 15-31 Jul 31 Jul 31 Jul 31 Favata invested $139,000 in the business, which in turn issued its common stock to her. The business paid cash for land costing $61,000. Favata plans to build an office building on the land. The business purchased medical supplies for $2,000 on account. Dr. Ansley Favata, P.C., officially opened for business. During the rest of the month, Favata treated patients and earned service revenue of $9,400, receiving cash for half the revenue earned. The business paid cash expenses: employee salaries, $2,400; office rent, $600; utilities, $1,800. The business sold medical supplies to another physician for cost of $100 and received cash. The business borrowed $39,000, signing a note payable to the bank. The business paid $1,100 on account. Jul 6: Favata invested $139,000 in the business, which in turn issued its common stock to her.

Jul 6 Jul 9 Jul 12 Jul 15 Jul 15-31 Jul 15-31 Jul 31 Jul 31 Jul 31 Favata invested $139,000 in the business, which in turn issued its common stock to her. The business paid cash for land costing $61,000. Favata plans to build an office building on the land. The business purchased medical supplies for $2,000 on account. Dr. Ansley Favata, P.C., officially opened for business. During the rest of the month, Favata treated patients and earned service revenue of $9,400, receiving cash for half the revenue earned. The business paid cash expenses: employee salaries, $2,400; office rent, $600; utilities, $1,800. The business sold medical supplies to another physician for cost of $100 and received cash. The business borrowed $39,000, signing a note payable to the bank. The business paid $1,100 on account. Jul 6: Favata invested $139,000 in the business, which in turn issued its common stock to her.

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter18: Comparative Forms Of Doing Business

Section: Chapter Questions

Problem 1BD

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