Refer to Exercise 2-20A.

Requirement

Record the transactions in the journal of Dr. Helen Samoa, P.C. List the transactions by date and give an explanation for each transaction.

Exercise 2-20A.

Dr. Helen Samoa opened a medical practice specializing in physical therapy. During the first month of operation (December), the business, titled Dr. Helen Samoa, Professional Corporation (P.C.), experienced the following events:

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Dec 6 Samoa invested $150,000 in the business, which in turn issued its common stock to her. The business paid cash for land costing $64,000. Samoa plans to build an office building on the land. 12 The business purchased medical supplies for $2,400 on account. 15 Dr. Helen Samoa, P.C., officially opened for business. During the rest of the month, Samoa treated patients and earned service revenue of $9,800, receiving cash for half the revenue earned. The business paid cash expenses: employee salaries, $3,600; office rent, $900; utilities, $400. The business sold medical supplies to another physician for cost of $1,000 and received cash. 15-31 15-31 31 The business borrowed $34,000, signing a note payable to the bank. The business paid $1,300 on account. 31 31