Kira Simpson opened a medical practice. During July, the first month of operation, the business, titled Kira Simpson, M.D., experienced the following events: i (Click the icon to view the transactions.) Analyze the effects of these events on the accounting equation of the medical practice of Kira Simpson, M.D. Analyze the events chronologically, one transaction at a time, beginning with the transaction on the 6th. For each transaction that follows the transaction on the 6th, calculate the balance in each ccount after analyzing its effect on the accounting equation. (Complete only the necessary answer boxes for your transaction lines. [Do not enter any zeros for your transaction lines.] For ransactions with the same date, be sure to enter each transaction on a separate line in the order presented in the problem. Carry down all balances to the "Bal." line, including zero alance accounts, entering a "0" for any zero balances. Enter a decrease in an account with a minus sign or parentheses. Abbreviations used: A/P = Accounts Payable; Cap. = Simpson, Capital Exp. Expense; Liab. = Liabilities; Med. = Medical; Rev. = Revenue; Sal. = Salaries; Sup.= Supplies; Withdr. = Simpson, Withdrawals.) /6 Cash ASSETS + Med. + Land Sup. + + = = LIAB. + A/P + Cap. + - C EQUITY Withdr.+ Service - Sal. Rev. Exp. + More info Jul. 6 - Jul. 9 Jul. 12 Jul. 15 Jul. 20 Jul. 31 Jul. 31 Rent Exp. - Utilities Exp. Simpson contributed $75,000 in the business by opening a bank account in the name of K. Simpson, MD. The business gave capital to to Simpson. Paid $44,000 cash for land. Purchased medical supplies for $2,500 on account. Officially opened for business. Paid cash expenses: employees' salaries, $1,400; office rent, $1,500; utilities, $600. Earned service revenue for the month, $11,000, receiving cash. Paid $1,900 on account. -
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
![Kira Simpson opened a medical practice. During July, the first month of operation, the business, titled Kira Simpson, M.D., experienced the following events:
(Click the icon to view the transactions.)
Analyze the effects of these events on the accounting equation of the medical practice of Kira Simpson, M.D.
Analyze the events chronologically, one transaction at a time, beginning with the transaction on the 6th. For each transaction that follows the transaction on the 6th, calculate the balance in each
account after analyzing its effect on the accounting equation. (Complete only the necessary answer boxes for your transaction lines. [Do not enter any zeros for your transaction lines.] For
transactions with the same date, be sure to enter each transaction on a separate line in the order presented in the problem. Carry down all balances to the "Bal." line, including zero
balance accounts, entering a "0" for any zero balances. Enter a decrease in an account with a minus sign or parentheses. Abbreviations used: A/P = Accounts Payable; Cap. = Simpson, Capital;
Exp. = Expense; Liab. = Liabilities; Med. = Medical; Rev. = Revenue; Sal. = Salaries; Sup. = Supplies; Withdr. = Simpson, Withdrawals.)
EQUITY
7/6
Cash
ASSETS
+ Med. + Land
Sup.
+
+
=
=
=
LIAB. +
A/P
+ Cap.
+
Withdr. + Service
Rev.
+
Sal.
Exp.
More info
Jul. 6
Jul. 9
Jul. 12
Jul. 15
Jul. 20
Jul. 31
Jul. 31
Rent
Exp.
Utilities
Exp.
Simpson contributed $75,000 in the business by opening a bank account in the
name of K. Simpson, MD. The business gave capital to to Simpson.
Paid $44,000 cash for land.
Purchased medical supplies for $2,500 on account.
Officially opened for business.
Paid cash expenses: employees' salaries, $1,400; office rent, $1,500; utilities, $600.
Earned service revenue for the month, $11,000, receiving cash.
Paid $1,900 on account.
I](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0e0e1b22-7403-483c-b53c-36ce2c1bdaa0%2F64dae570-c6d1-4e10-8441-d4b92373aa49%2Fdm1a49m_processed.png&w=3840&q=75)
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