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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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
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
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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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