Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

Izabela Cullumber opened a medical office under the name Izabela Cullumber, MD, on August 1, 2021. On August 31, the balance sheet showed Cash $2,000;

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

Izabela Cullumber opened a medical office under the name Izabela Cullumber, MD, on August 1, 2021. On August 31, the balance sheet showed Cash $2,000; Accounts Receivable $2,100; Supplies $ 457; Equipment $6,600; Accounts Payable $4,060; Note Payable $ 2.000; and I. Cullumber, Capital, $ 5,097. During September, the following transactions occurred: Sept. 4 Collected $ 1.300 of accounts receivable. 5 Provided services of $ 10.773, of which $ 6,600 was collected from patients and the remainder was on account. 7 Paid $ 1.200 on accounts payable. 12 Purchased additional equipment for $2.450, paying $ 859 cash and leaving the balance on account. 15 Paid salaries. $ 4.500: rent for September. $ 2.047; and advertising expenses. $ 179. 18 Collected the balance of the accounts receivable from August 31. 20 Withdrew $ 575 for personal use. 26 Borrowed $ 2.000 from the Bank of Montreal on a note payable. 28 Signed a contract to provide medical services, not covered under the government health plan to employees of CRS Corp. in October for 5 4.700.CRS Corp. will pay the amount owing after the medical services have been provided 29 Received the telephone bill for September. $ 325. Provided services of $ 10,773, of which $6,600 was collected from patients and the remainder was on account. Paid $1,200 on accounts payable. Purchased additional equipment for $2,450, paying $ 859 cash and leaving the balance on account. Paid salaries, $ 4,500: rent for September, $ 2,047; and advertising expenses, $ 179. Collected the balance of the accounts receivable from August 31. Withdrew $ 575 for personal use. Borrowed $2,000 from the Bank of Montreal on a note payable. Signed a contract to provide medical services, not covered under the government health plan, to employees of CRS Corp. in October for $ 4.700. CRS Corp. will pay the amount owing after the medical services have been provided. Received the telephone bill for September, $325. Billed the government $ 10.700 for services provided to patients in September. UL Beginning with the August 31 balances, prepare a tabular analysis of the effects of the September transactions on the accounting equation. (If a transaction causes a decrease in Assets, Liabilities or Owner's Equity, place a negative sign (or parentheses) in front of the mount entered for the particular Asset, Liability or Equity item that was reduced. See Illustration 1-13 for example.) Assets Accounts Receivable Cash Supplies Equipmei $ $ 2100 457 $ 2000 Bal. $ (1300) 1300 Sept. 4 5 6600 7 12 15 begung WIUTE AugusCJI Dalarices, prepare a ranurar anaiysis ore eitects or ne septemberansactions One accounting equation. (If a transaction causes a decrease in Assets, Liabilities or Owner's Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. See Illustration 1-13 for example) Liabilities + Owner's E Notes Payable Accounts Payable 1. Cullumber, Capital I. Cullumber, Drawings + 2000 $ 2000 $ 5097 $ Owner's Equity I. Cullumber, Capital 1. Cullumber, Drawings Revenues Expenses 5097 $ $ $ 10773 ws Prepare an income statement for September. IZABELA CULLUMBER, MD Income Statement $ $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial And Managerial Accounting For MBAs

Authors: Peter D. Easton

6th Edition

9781618533593

Students also viewed these Accounting questions