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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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.

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

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.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON

Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education

Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education