Zepta Clinic, Inc. established a business for providing clinical services to clients on December 1, 2019. For raising capital, 25,000 shares of capital stock were issued on December 1, 2019 at a price of $30 per share. The company also borrowed $50,000 on December 5, 2019 from a bank by signing 12 months, 10% notes payable. The interest amount is to be paid on maturity of the note. On December 7, the clinic paid rent for six months beginning December 1 at $8,000 per month. Some medical instruments were purchased from Swiss Pharmacy on December 8, 2019. The cost of medical instruments was $370,000, Zepta paid 40% in cash and promised to pay the remaining balance in two equal installments in 90 days. The company also placed an advertisement for introduction and promotion of clinic on December 10, 2019. The cost of advertisement was $900 and payment due in 30 days. On December 12, 2019 surgical supplies were purchased for $6,000 cash. These supplies are expected to last several months. On December 15, the company signed an agreement with Jaleel Developers to provide medical services to its employees at a rate of $600 per employee who may visit the clinic for checkup. At the end of each month, the payment is to be reimbursed by Jaleel Developers. Ten employees of Jaleel Developers visited the clinic for checkup on December 20, 2019. On December 23, 2019, the company returned some of medical instruments costing $30,000 that were purchased on December 8, 2019. . Return of these instruments reduced the amount owed to Swiss Pharmacy. Salaries of $8,300 for the month of December were paid to the employees on December 31, 2019.Required: a) Record each of the above transaction in General Journal form. Include a brief explanation of the transaction as part of each Journal entry.b) Indicate the effect of each of these transactions on major elements of Income Statement and Balance Sheet. Use the code letters I for increase, D for decrease and NE for no effect. Organize your answer in tabular form using the column headings shown below:Income Statement ____ Balance Sheet_____________Transaction Revenue - Expenses = Net Income Assets = Liabilities + Owner's Equityc) Suggest some suitable mechanism by which Zepta Clinic, Inc. can improve its recording process.

Q#D1: Zepta Clinic, Inc. established a business for providing clinical services to clients on December 1, 2019. For raising capital, 25,000 shares of capital stock were issued on December 1, 2019 at a price of $30 per share. The company also borrowed $50,000 on December 5, 2019 from a bank by signing 12 months, 10% notes payable. The interest amount is to be paid on maturity of the note. On December 7, the clinic paid rent for six months beginning December 1 at $8,000 per month. Some medical instruments were purchased from Swiss Pharmacy on December 8, 2019. The cost of medical instruments was $320,000, Zepta paid 40% in cash and promised to pay the remaining balance in two equal installments in 90 days. The company also placed an advertisement for introduction and promotion of clinic on December 10. 2019. The cost of advertisement was $900 and payment due in 30 days. On December 12, 2019 surgical supplies were purchased for $6,000 cash. These supplies are expected to last several months. On December 15, the company signed an agreement with Jaleel Developers to provide medical services to its employees at a rate of $600 per employee who may visit the clinic for checkup. At the end of each month, the payment is to be reimbursed by Jaleel Developers. Ten employees of Jaleel Developers visited the clinic for checkup on December 20, 2019. On December 23, 2019, the company returned some of medical instruments costing $30,000 that were purchased on December 8, 2019. . Return of these instruments reduced the amount owed to Swiss Pharmacy. Salaries of $8,300 for the month of December were paid to the employees on December 31, 2019. Required: a) Record each of the above transaction in General Journal form. Include a brief explanation of the transaction as part of each Journal entry. b) Indicate the effect of each of these transactions on major elements of Income Statement and Balance Sheet. Use the code letters I for increase, D for decrease and NE for no effect. Organize your answer in tabular form using the column headings shown below: Income Statement Balance Sheet Transaction Revenue - Expenses = Net Income Assets = Liabilities + Owner's Equity c) Suggest some suitable mechanism by which Zepta Clinic, Inc. can improve its recording process