Transaction Analysis Mead Pet Hospital, owned by R. Mead, a veterinarian, opened for business on December 1 of the current year. Using the horizontal

Question

22 users unlocked this solution today!

Transaction Analysis Mead Pet Hospital, owned by R. Mead, a veterinarian, opened for business on December 1 of the current year. Using the horizontal worksheet below, record the following December transactions. Total the columns to show that assets equal liabilities plus stockholders' equity as of December 31. 1. Mead opened a checking account on December 1 at United Bank in the name of Mead Pet Hospital and deposited $20,000 cash. Mead received common stock for his investment. 2. Paid rent for December, $1,100. 3. Purchased office equipment on account, $2,900. 4. Purchased supplies for cash, $1,700. 5. Billed clients for services rendered, $7,300. 6. Paid secretary's salary, $1,950. 7. Paid $1,500 on account for the equipment purchased on December 3. 8. Collected $5,800 from clients previously billed for services. 9. The company paid stockholders $2,200 as a cash dividend. Note: Use negative signs with answers, when appropriate. Assets Accounts Office Transaction Cash + Receivable + Supplies + Equipment = = Liabilities + Accounts Payable Common Stockholders' Equity Retained Earnings Stock Revenue - Expenses Dividends 1. Invested cash to begin business. 0 0 0 0 0 0 0 0 2. Paid rent. 0 0 0 0 0 0 0 0 0 3. Purchased office equipment. 0 0 0 0 0 0 0 0 0 4. Purchased supplies. 0 0 0 0 0 0 0 0 0 5. Billed clients for services rendered. 0 0 0 0 0 0 0 0 0 6. Paid secretary's salary. 0 0 0 0 0 0 0 0 0 7. Made partial payment on account. 0 0 0 0 0 0 0 0 0 8. Collected from clients previously billed. 0 0 0 0 0 0 0 0 0 9. Paid stockholders a dividend. TOTALS 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Assets 0 = $ Stockholders' Liabilities + Equity 0 0