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Kira Hyata, MD, opens a medical practice. During her first month of operation, January, the clinic, named Hyata Medical Clinic, experienced the following events.
Kira Hyata, MD, opens a medical practice. During her first month of operation, January, the clinic, named Hyata Medical Clinic, experienced the following events. (Click the icon to view the events.) Analyze the effects of these events on the accounting equation of Hyata Medical Clinic. Analyze the events chronologically, one transaction at a time, beginning with the transaction on January 6th. For each transaction that follows the January 6 transaction, calculate the balance in each account after analyzing its effect on the accounting equation. (Complete only the necessary answer boxes for the transaction lines. Do not enter "0" in the transaction lines. For events with the same date, be sure to enter the set of transactions for each event on a separate line in the order presented in the problem. Carry down all balances to the "Bal." line, including zero balance accounts, entering a "0" for any zero balances. Enter a decrease in an account with a minus sign or parentheses. Abbreviations used: A/P = Accounts Payable; Capital - Kira Hyata, Capital; Exp. - Expense; Liab. - Liabilities; Med. = Medical; Rev. = Revenue; Sal. = Salaries; Sup. = Supplies.) EQUITY Sal. ASSETS LIAB. Service Rent Utilities Cash + Med. Sup. + Land A/P + Capital + Rev. - Exp. Exp. Exp. 1/6 + + + 1/9 Bal. 1/12 Bal. 1/15 Bal. 1/15 -31 Bal. 1/15 -31 Bal. 1/28 Bal. 1/31 Bal. ++ Events Jan. 6 Hyata invested $270,000 in the clinic by opening a bank account in the name of Hyata Medical Clinic. 9 Hyata Medical Clinic paid cash for land costing $145,000. There are plans to build a clinic on the land. Until then, the business will rent an office. 12 15 15-31 The clinic purchased medical supplies for $10,600 on account. On January 15, Hyata Medical Clinic officially opened for business. During the rest of the month, the clinic earned professional fees of $21,500 and received cash immediately. 15-31 The clinic paid cash expenses: employee salaries, $5,400; office rent, $3,900; utilities, $460. 28 The clinic sold supplies to another clinic at cost for $800. 31 The clinic paid $4,000 on the account from January 12.
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