Dr Knights, DVM, opened a veterinary clinic on May 1, current year The business transactions for May are shown as follows May 1 Dr Knights invested $480,000 cash in the business in exchange for 6,000 shares of capital stock May 4 Land and a building were purchased for $300,000 Of this amount, $84,000 applied to the land, and $216,000 to the building A cash payment of $120,000 was made at the time of the purchase, and a note payable was issued for the remaining balance May 9 Medical instruments were purchased for $156,000 cash May 16 Office fixtures and equipment were purchased for $60,000 Dr Knights paid $24,000 at the time of purchase and agreed to pay the entire remaining balance in 15 days May 21 Office supplies expected to last several months were purchased for $6,000 cash May 24 Dr Knights billed clients $2,640 for services rendered Of this amount, $2,280 was received in cash, and $360 was billed on account (due in 30 days) May 27 A $480 invoice was received for several radio advertisements aired in May The entire amount is due on June 5 May 28 Received a $120 payment on the $360 account receivable recorded May 24 May 31 Paid employees $3,360 for salaries earned in May A partial list of account titles used by Dr Knights includes the following Cash Notes Payable Accounts Receivable Accounts Payable Office Supplies Capital Stock Medical Instruments Veterinary Service Revenue Office Fixtures and Equipment Advertising Expense Land Salary Expense Building Using the information above, what is the amount of Total Assets $635,280 $689,280 $695,040 $695,280 Using the information above, what is the amount of Total Liabilities $216,480 $216,720 $180,000 $36,480 Using the information above, what is the amount of Total Owner's Equity $515,280 $478,800 $164,800 $298,800 Using the information above, what is the amount of Profits OR Losses ($1,200) $1,200 ($720) $695,280

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Posted on Aug 08, 2024

Dr. Knights, DVM, opened a veterinary clinic on May 1, current year. The business transactions for May are shown as follows.

May 1	Dr. Knights invested $480,000 cash in the business in exchange for 6,000 shares of capital stock.
May 4	Land and a building were purchased for $300,000. Of this amount, $84,000 applied to the land, and $216,000 to the building. A cash payment of $120,000 was made at the time of the purchase, and a note payable was issued for the remaining balance.
May 9	Medical instruments were purchased for $156,000 cash.
May 16	Office fixtures and equipment were purchased for $60,000. Dr. Knights paid $24,000 at the time of purchase and agreed to pay the entire remaining balance in 15 days.
May 21	Office supplies expected to last several months were purchased for $6,000 cash.
May 24	Dr. Knights billed clients $2,640 for services rendered. Of this amount, $2,280 was received in cash, and $360 was billed on account (due in 30 days).
May 27	A $480 invoice was received for several radio advertisements aired in May. The entire amount is due on June 5.
May 28	Received a $120 payment on the $360 account receivable recorded May 24.
May 31	Paid employees $3,360 for salaries earned in May.

A partial list of account titles used by Dr. Knights includes the following.

Cash	Notes Payable
Accounts Receivable	Accounts Payable
Office Supplies	Capital Stock
Medical Instruments	Veterinary Service Revenue
Office Fixtures and Equipment	Advertising Expense
Land	Salary Expense
Building

Using the information above, what is the amount of Total Assets?

Using the information above, what is the amount of Total Liabilities?

$216,480

$216,720

$180,000

$36,480
Using the information above, what is the amount of Total Owner's Equity?

$515,280

$478,800

$164,800

$298,800
Using the information above, what is the amount of Profits OR Losses?

($1,200)

$1,200

($720)

$695,280