Sarah Weiss, M.D., after completing her medical education, established her own practice on May 1. The following transactions occurred during the first month. LO8 May 1 Weiss opened a bank account in the name of the practice, Sarah Weiss, M.D., by making a deposit of $16,000.

May 1 Paid office rent for May, $700.

May 2 Purchased office equipment for cash, $7,200.

Other information Dr. Weiss estimated the useful life of medical instruments at 10 years and of office equipment at 12 years. The account titles to be used and the account numbers are as follows:

Instructions a Journalize the above transactions. (Number journal pages to permit cross refer¬
ence to ledger.)
b Post to ledger accounts. (Use running balance form of ledger account. Number ledger accounts to permit cross reference to journal.)
c Prepare a trial balance at May 31, 19_ _ d Prepare adjusting entries to record depreciation for the month of May and post to ledger accounts. (For medical instruments, cost $12,000 -r- 10 years x ^-)
e Prepare an adjusted trial balance.
f Prepare an income statement and a balance sheet in report form, g Prepare closing entries and post to ledger accounts, h Prepare an after-closing trial balance.

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May 3 Purchased medical instruments from Niles Instruments, Inc., at a cost of $12,000. A cash down payment of $2,000 was made and a note payable was signed which required a payment of $5,000 on June 3 of the current year and a final payment of $5,000 on July 3. May 3 Retained by Brandon Merchandising, Inc., to be on call for emergency service at a monthly fee of $400. The fee for May was collected in cash. May 15 Excluding the retainer of May 3, fees earned during the first 15 days of the month amounted to $1,600, of which $600 was in cash and $1,000 was in accounts receivable. May 15 Paid Mary Hester, R.N., her salary for the first half of May, $750. May 16 Dr. Weiss withdrew $975 for personal use. May 19 Treated Michael Tracy for injuries received in an accident during employ- ment at Brandon Merchandising, Inc. Completed medical portions of insur- ance and industrial accident reports. May 27 Treated Cynthia Knight, who paid $25 cash for an office visit and who agreed to pay $35 on June 1 for laboratory medical tests completed May 27. May 31 Excluding the treatment of Cynthia Knight on May 27, fees earned during the last half of month amounted to $3,000, of which $1,100 was in cash and $1,900 was in accounts receivable. May 31 Paid Mary Hester, R.N., $750 salary for the second half of month. May 31 Received a bill from McGraw Medical Supplies in the amount of $640 rep- resenting the amount of medical supplies used during May. (Debit Medical Supplies Expense.) May 31 Paid utilities bill for the month, $150.