S2-3. (Learning Objectives 1, 2: Analyzing transactions; understanding how accounting works) Hannah Lyle, a medical doctor, opened a medical practice. The business completed the following transactions:

After these transactions, how much cash does the business have to work with? Use a T-account to show your answer.

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Aug 1 Lyle invested $20,000 cash to start her medical practice. The business issued ordinary shares to Lyle. 123 Purchased medical supplies on account totaling $8,100. 2 Paid monthly office rent of $2,500. Recorded $15,000 revenue for service rendered to patients, received cash of $4,000, and sent bills to patients for the remainder.