College Accounting (Book Only): A Career Approach
12th Edition
ISBN: 9781305084087
Author: Cathy J. Scott
Publisher: Cengage Learning
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Chapter 1, Problem 2PB
In March, K. Haas, M.D., established the Haas Sports Injury Clinic. The clinic’s account headings are presented below. Transactions completed during the month of March follow.
- a. Haas deposited $48,000 in a bank account in the name of the business.
- b. Paid the rent for the month, $2,200, Ck. No. 1000 (Rent Expense).
- c. Bought supplies for cash from Medco Co., $2,138.
- d. Bought professional equipment on account from Med-Tech Company, $18,000.
- e. Bought office equipment on account from Equipment Depot, $1,955.
- f. Sold professional services for cash, $8,960 (Professional Fees).
- g. Paid on account to Med-Tech Company, $3,000, Ck. No. 1001.
- h. Received and paid the bill for utilities, $472, Ck. No. 1002 (Utilities Expense).
- i. Paid the salary of the assistant, $1,738, Ck. No. 1003 (Salary Expense).
- j. Sold professional services for cash, $10,196 (Professional Fees).
- k. Haas withdrew cash for personal use, $3,500, Ck. No. 1004.
Required
- 1. In the equation, write the owner’s name above the terms Capital and Drawing.
- 2. Record the transactions and the balance after each transaction. Identify the account affected when the transaction involves revenue, expenses, or a withdrawal.
- 3. Write the account totals from the left side of the equals sign and add them. Write the account totals from the right side of the equals sign and add them. If the two totals are not equal, check the addition and subtraction. If you still cannot find the error, re-analyze each transaction.
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Chapter 1 Solutions
College Accounting (Book Only): A Career Approach
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