Requirement 1. Analyze the effects of these events on the accounting equation of the medical practice of Dr.

Karen GagnonKaren Gagnon,

P.C.

Begin with the first transaction on

JulyJuly

6. (Use parentheses or a minus sign when decreasing accounts. If a box is not used in the table leave the box empty; do not enter a zero. Enter the transactions in the same order as they appear in the original list.)

Assets

=

Liabilities

+

Stockholders' Equity

Accts

Medical

Accts

Note

Common

Retained

Type of Equity

Cash

+

Rec.

+

Supplies

+

Land

=

Pay.

+

Payable

+

Stock

+

Earnings

Transaction

Jul 6

151,000

151,000

Issued stock

6

GagnonGagnon

invested

$ 151 comma 000$151,000

in the business, which in turn issued its common stock to her.

9

The business paid cash for land costing

$ 58 comma 000$58,000.

GagnonGagnon

plans to build an office building on the land.

12

The business purchased medical supplies for

$ 1 comma 500$1,500

on account.

15

Dr.

Karen GagnonKaren Gagnon,

P.C., officially opened for business.

15-31

During the rest of the month,

GagnonGagnon

treated patients and earned service revenue of

$ 9 comma 100$9,100,

receiving cash for half the revenue earned.

15-31

The business paid cash expenses: employee salaries,

$ 3 comma 000$3,000;

office rent,

$ 1 comma 100 ;$1,100;

utilities,

$ 900$900.

(Record expenses as a total amount.)

31

The business sold supplies to another physician for cost of

$ 100$100

and received cash.

31

The business borrowed

$ 33 comma 000$33,000,

signing a note payable to the bank.

31

The business paid

$ 600$600

on account.