Problem 3.5A (Static) The Accounting Cycle: Journalizing, Posting, and Preparing a Trial Balance (LO3-1 through LO3-10) Dr. Schekter, DVM, opened a veterinary clinic on May 1, current year. The business transactions for May are shown as follows. May 1 Dr. Schekter invested $480,099 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. Schekter 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. Schekter billed clients $2,64 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. Schekter includes the following. Cash Accounts Receivable Office Supplies Medical Instruments Office Fixtures and Equipment Land Building Notes Payable Accounts Payable Capital Stock Veterinary Service Revenue Advertising Expense Salary Expense No Date General Journal Credit Debit 480.000 1 May 01 Cash Capital stock 480,000 7 2 May 04 84.000 216,000 Land Building Cash Notes payable 120.000 180 000 3 May 09 156,000 Medical instruments Cash 156 000 + 4 May 16 60,000 Office fixtures and equipment Cash Accounts payable 24,000 36.000 5 May 21 6,000 Office supplies Cash 6,000 6 6 May 24 Cash 2.280 360 Accounts receivable Veterinary service revenue 2.640 7 May 27 480 Advertising expense Accounts payable 480 2 8 May 28 120 Cash Accounts receivable 120 . 9 May 31 3,360 Salary expense Cash 3.360 Problem 3.5A (Static) The Accounting Cycle: Journalizing, Posting, and Preparing a Trial Balance (LO3-1 through LO3-10) Dr. Schekter, DVM, opened a veterinary clinic on Mey 1. current year. The business transactions for Mey are shown as follows. May 1 Dr. Schekter invested $430,00 cash in the business in exchange for 6,000 shares of capital stock. May 4 Land and a building were purchased for $300,228. 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 $156,00 cash. May 16 Office fixtures and cquipment were purchased for $60,000. Dr. Schelter paid $24.ee 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. Scheiter billed clients $2,648 for services rendered. Of this amount, $2,288 was received in cash, and $368 was billed on account (due in 38 days). May 27 A $488 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 $3,368 for salaries carned in May. A partial list of account titles used by Dr. Schekter includes the following. Cash Accounts Receivable Office Supplies Medical Instruments Office Fixtures and Equipment Land Building Notes Payable Accounts Payable Capital Stock Veterinary Service Revenue Advertising Expense Salary Expense Requirement General Journal General Ledger Trial Balance Transaction Analysis Summary The trial balance is a listing of all account balances from the General Ledger as of a specific date. Click on any individual account balance to return to the General Ledger. The trial balance is only as accurate as the underlying journal entries. If the total debits do not equal the total credits, you have a journal entry that is out of balance. If you have an abnormal ending balance indicated with brackets in the General Ledger), you should review the journal entries that affected that account to ensure that the journal entries are correct. Show less DR. SCHEKTER, DVM Trial Balance May 31, 2019 Account Title Credit Debit 173,0401 IS 240 84,000 216,000 158,000 60,000 8,000 Cash Accounts receivable Land Building Medical instruments Office fixtures and equipment Office supplies Accounts payable Notes payable Capital stock Veterinary service revenue Salary expense Advertising expense Total 36.480 180.000 480.000 2.640 3,360 480 699,12015 699,120 (General Ledger Transaction Analyale Problem 3.5A (Static) The Accounting Cycle: Journallzing, Posting, and Preparing a Trial Balance (L03-1 through LO3-10) Dr. Schekter, DVM, opened a veterinary clinic on May 1, current year. The business transactions for May are shown as follows. May 1 Dr. Schekter invested $430,000 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,eee 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. Scheiter 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. Scheiter billed clients $2,648 for services rendered. Of this amount, $2,288 was received in cash, and $368 was billed on account (due in 30 days). May 27 A $488 invoice was received for several radio advertisements aired in May. The entire amount is due on June 5. May 28 Received a $12e payment on the $360 account receivable recorded May 24. May 31 Paid employees $3,360 for salaries carned in May. A partial list of account titles used by Dr. Schekter includes the following. Cash Accounts Receivable Office Supplies Medical Instruments Office Fixtures and Equipment Land Building Notes Payable Accounts Payable Capital Stock Veterinary Service Revenue Advertising Expense Salary Expense = General Requirement General Transaction Journal Ledger Trial Balance Analysis Summary Analyze the effects that each of these transactions will have on the following six components of the company's financial statements for the month of May. Use I for increase, D for decrease, and NE for no effect. The May 1 transaction is provided for you. Income Statement Balance Sheet Date Revenue Expenses Net Income Assets Llabilities Owners' Equity May 01 NE NE NE NE May 04 May 09 May 16 May 21 May 24 May 27 May 28 May 31 Problem 3.54 (Static) The Accounting Cycle: Journalizing, Posting, and Preparing a Trial Balance (L03-1 through LO3-10) Dr. Schekter, DVM, opened a veterinary clinic on May 1, current year. The business transactions for Mey are shown as follows. May 1 Dr. Schekter invested $480,cee cash in the business in exchange for 6,600 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. Schelter paid $24.ee 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. Schokter billed clients $2,642 for services rendered. Of this amount, $2,288 was received in cash, and $360 was billed on account (due in 30 days). May 27 A $488 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 $368 account receivable recorded May 24. May 31 Paid employees $3,368 for salaries carned in May. A partial list of account titles used by Dr. Schekter includes the following. Cash Accounts Receivable Office Supplies Medical Instruments Office Fixtures and Equipment Land Building Notes Payable Accounts Payable Capital Stock Veterinary Service Revenue Advertising Expense Salary Expense General General Requirement Transaction Trial Balance Summary Journal Ledger Analysis Using figures from the trial balance, compute total assets, total liabilities, and owners' equity. Did May appear to be a profitable month? Total assets Total liabilities Total owners' (stockholders') equity Did May appear to be a profitable month?