Practice Exercise Exercise 1: Dr. Schekter, DVM opened a veterinary clinic on May 1. The business transactions for May are shown below. Record Journal Entries. May 1 Dr. Schekter commenced business with a capital of $400,000 May 4 Land and building were purchase for $250,000. Of this amount, $70,000 applied to the land, and $180,000 to the building. A cash payment of $100,000 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 $130,000 cash. May 16 Office fixtures and equipment were purchased for $50,000. Dr.Schekter paid $20,000 at the time of purchase and the entire amount remaining balance in 15 days. May 21 Office supplies expected to last several months were purchased for $5,000 cash. May 24 Dr.Schekter billed clients $2,200 for services rendered. Of this amount, $1,900 was received in cash, and $300 was billed on account(due in 30 days). May 27, $400 paid for advertisement May 28 Received $100 payment on the $300 account receivable recorded May 24. May 31 Paid employees $2,800 for salaries. Exercise 2. Donegan's Lawn care services bega operatios in July 2007. The company engaged in the following transactions during its first month of operations. July 18 Commenced business with a capital of $750,000 July 22 Purchased office supplies on account for $4,000 July 23 Purchased mowing equipmentfor $2,000. Paying 400 cash and issuing a 60-day note payable for the remaining balance. July 24 Paid $25 cash for fuel. July 25 Billed Lost creek Cemetry $150 for mowing services. The entire amount is due July 26 Sold goods for cash $200. July 27 Paid $980 to Bob Needham,on his account for $1,000 in settlement. July 30 Collected $150 from Lost Creek Cemetry for mowing services provided on July 25. July 31 Paid $80 salary to employee Teddy Grimm for work performed in July. Record each of the above transactions in general journal form