Problem 1-08A

Izabela Oriole opened a medical office under the name Izabela Oriole, MD, on August 1, 2021. On August 31, the balance sheet showed Cash $2,700; Accounts Receivable $2,500; Supplies $530; Equipment $6,900; Accounts Payable $4,860; Note Payable $2,700; and I. Oriole, Capital, $5,070. During September, the following transactions occurred:

Sept.	4		Collected $1,050 of accounts receivable.
	5		Provided services of $9,987, of which $6,900 was collected from patients and the remainder was on account.
	7		Paid $1,800 on accounts payable.
	12		Purchased additional equipment for $2,505, paying $860 cash and leaving the balance on account.
	15		Paid salaries, $4,100; rent for September, $2,009; and advertising expenses, $230.
	18		Collected the balance of the accounts receivable from August 31.
	20		Withdrew $650 for personal use.
	26		Borrowed $2,700 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 $4,600. CRS Corp. will pay the amount owing after the medical services have been provided.
	29		Received the telephone bill for September, $315.
	30		Billed the government $10,800 for services provided to patients in September.