In April, S. L. Pasternak, D.V.M., established the Pasternak Vet¬

erinary Clinic. The organization’s account headings are presented below. Trans¬

actions completed during the month of April follow.

a. Deposited $20,000 in a bank account entitled Pasternak Veterinary Clinic.

b. Paid rent for the month, $950.

c. Bought supplies on account from Hernandez and Company, $1,417.

d. Bought professional equipment on account from Terrel Company, $6,800.

e. Received bill from the Daily Chronicle for advertising, $394.

f. Paid $1,950 to Terrel Company as part payment on account for purchase of professional equipment recorded previously.
g. Received cash for professional services, $4,610 (Professional Fees).
h. Received and paid bill for utilities, $172.
i. Paid salary of assistant, $1,200.
j. Bought a copy machine from Ramsey Office Suppliers on account, $3,200.
k. Pasternak withdrew cash for personal use, $1,560.
Instructions l. In the equation, complete the asset section and list the owner’s name above the term Capital.
2. Record the transactions and the balance after each transaction. Identify the Check Figure accounts affected when the transaction involves revenue, expenses, or Cash, $18,778 drawing.
3. Write the account totals from the left side of the equals sign and add them.
Write the account totals from the right side of the equals sign and add them.
If the two totals are not equal, first check the addition and subtraction. If you still cannot find the error, reanalyze each transaction.

Transcribed Image Text:

Assets Cash Supplies + = Liabilities + Accounts Payable Capital Owner's Equity " + Revenue Expenses