Jul 6 Jul 9 Jul 12 Jul 15 Jul 15-31 Jul 15-31 Jul 31 Jul 31 Jul 31 Favata invested $139,000 in the business, which in turn issued its common stock to her. The business paid cash for land costing $61,000. Favata plans to build an office building on the land. The business purchased medical supplies for $2,000 on account. Dr. Ansley Favata, P.C., officially opened for business. During the rest of the month, Favata treated patients and earned service revenue of $9,400, receiving cash for half the revenue earned. The business paid cash expenses: employee salaries, $2,400; office rent, $600; utilities, $1,800. The business sold medical supplies to another physician for cost of $100 and received cash. The business borrowed $39,000, signing a note payable to the bank. The business paid $1,100 on account. Jul 6: Favata invested $139,000 in the business, which in turn issued its common stock to her.
Jul 6 Jul 9 Jul 12 Jul 15 Jul 15-31 Jul 15-31 Jul 31 Jul 31 Jul 31 Favata invested $139,000 in the business, which in turn issued its common stock to her. The business paid cash for land costing $61,000. Favata plans to build an office building on the land. The business purchased medical supplies for $2,000 on account. Dr. Ansley Favata, P.C., officially opened for business. During the rest of the month, Favata treated patients and earned service revenue of $9,400, receiving cash for half the revenue earned. The business paid cash expenses: employee salaries, $2,400; office rent, $600; utilities, $1,800. The business sold medical supplies to another physician for cost of $100 and received cash. The business borrowed $39,000, signing a note payable to the bank. The business paid $1,100 on account. Jul 6: Favata invested $139,000 in the business, which in turn issued its common stock to her.
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter18: Comparative Forms Of Doing Business
Section: Chapter Questions
Problem 1BD
Related questions
Question
100%
Record the transactions in the journal of Dr. Ansley Favata, P.C. List the transactions by date and give an explanation for each transaction.
![Jul 6
Jul 9
Jul 12
Jul 15
Jul 15-31
Jul 15-31
Jul 31
Jul 31
Jul 31
Jul
Date
Jul
Favata invested $139,000 in the business, which in turn issued its
common stock to her.
Jul 6: Favata invested $139,000 in the business, which in turn issued its common stock to her.
The business paid cash for land costing $61,000. Favata plans to build
an office building on the land.
The business purchased medical supplies for $2,000 on account.
Dr. Ansley Favata, P.C., officially opened for business.
Date
During the rest of the month, Favata treated patients and earned
service revenue of $9,400, receiving cash for half the revenue earned.
The business paid cash expenses: employee salaries, $2,400; office
rent, $600; utilities, $1,800.
The business sold medical supplies to another physician for cost of
$100 and received cash.
The business borrowed $39,000, signing a note payable to the bank.
The business paid $1,100 on account.
Journal Entry
Accounts and Explanations
Jul 9: The business paid cash for land costing $61,000. Favata plans to build an office building on the land.
Debit
Journal Entry
Accounts and Explanations
Credit
Debit
Credit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7c2137a4-be8a-4489-9332-4e24eb50b2f2%2F8a719699-c95b-4e18-b25f-2d09080604f9%2Fsyqp7rw_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Jul 6
Jul 9
Jul 12
Jul 15
Jul 15-31
Jul 15-31
Jul 31
Jul 31
Jul 31
Jul
Date
Jul
Favata invested $139,000 in the business, which in turn issued its
common stock to her.
Jul 6: Favata invested $139,000 in the business, which in turn issued its common stock to her.
The business paid cash for land costing $61,000. Favata plans to build
an office building on the land.
The business purchased medical supplies for $2,000 on account.
Dr. Ansley Favata, P.C., officially opened for business.
Date
During the rest of the month, Favata treated patients and earned
service revenue of $9,400, receiving cash for half the revenue earned.
The business paid cash expenses: employee salaries, $2,400; office
rent, $600; utilities, $1,800.
The business sold medical supplies to another physician for cost of
$100 and received cash.
The business borrowed $39,000, signing a note payable to the bank.
The business paid $1,100 on account.
Journal Entry
Accounts and Explanations
Jul 9: The business paid cash for land costing $61,000. Favata plans to build an office building on the land.
Debit
Journal Entry
Accounts and Explanations
Credit
Debit
Credit
Expert Solution
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Step 1
Journal entries are the primary reporting of the business transactions in the books of accounts. These are reported in order to prepare a daily record of business transactions.
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