More infoJul. 6Jul. 9Jul. 12Jul. 15Jul. 20Jul. 31Jul. 31Simpson contributed $56,000 in the business by opening a bank account in thename of K. Simpson, MD. The business gave capital to to Simpson.Paid $46,000 cash for land.Purchased medical supplies for $1,900 on account.Officially opened for business.Paid cash expenses: employees' salaries, $1,600; office rent, $1,000; utilities, $300.Earned service revenue for the month, $7,000, receiving cash.Paid $1,050 on account.PrintDoneI 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 the6th, calculate the balance in each account after analyzing its effect on the accounting equation. (Complete only the necessary answer boxes for yourtransaction 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 linein 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 adecrease 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.)7/6CashASSETS+ Med.Sup.+= LIAB. ++ Land =+=A/P+ Cap.(...)+EQUITYWithdr. + + Service - Sal.Rev.Exp.+-RentExp.-UtilitiesExp.

Name: More infoJul. 6Jul. 9Jul. 12Jul. 15Jul. 20Jul. 31Jul. 31Simpson contr
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Description: More infoJul. 6Jul. 9Jul. 12Jul. 15Jul. 20Jul. 31Jul. 31Simpson contributed $56,000 in the business by opening a bank account in thename of K. Simpson, MD. The business gave capital to to Simpson.Paid $46,000 cash for land.Purchased medical supplies

Assets :— It is the resources owned by company. Liabilities :— It is the obligation of company…

Business

Accounting

More info Jul. 6 Jul. 9 Jul. 12 Jul. 15 Jul. 20 Jul. 31 Jul. 31 Simpson contributed $56,000 in the business by opening a bank account in the name of K. Simpson, MD. The business gave capital to to Simpson. Paid $46,000 cash for land. Purchased medical supplies for $1,900 on account. Officially opened for business. Paid cash expenses: employees' salaries, $1,600; office rent, $1,000; utilities, $300. Earned service revenue for the month, $7,000, receiving cash. Paid $1,050 on account. Print Done I

More info Jul. 6 Jul. 9 Jul. 12 Jul. 15 Jul. 20 Jul. 31 Jul. 31 Simpson contributed $56,000 in the business by opening a bank account in the name of K. Simpson, MD. The business gave capital to to Simpson. Paid $46,000 cash for land. Purchased medical supplies for $1,900 on account. Officially opened for business. Paid cash expenses: employees' salaries, $1,600; office rent, $1,000; utilities, $300. Earned service revenue for the month, $7,000, receiving cash. Paid $1,050 on account. Print Done I

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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Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

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Question

More info
Jul. 6
Jul. 9
Jul. 12
Jul. 15
Jul. 20
Jul. 31
Jul. 31
Simpson contributed $56,000 in the business by opening a bank account in the
name of K. Simpson, MD. The business gave capital to to Simpson.
Paid $46,000 cash for land.
Purchased medical supplies for $1,900 on account.
Officially opened for business.
Paid cash expenses: employees' salaries, $1,600; office rent, $1,000; utilities, $300.
Earned service revenue for the month, $7,000, receiving cash.
Paid $1,050 on account.
Print
Done
I

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.)
7/6
Cash
ASSETS
+ Med.
Sup.
+
= LIAB. +
+ Land =
+
=
A/P
+ Cap.
(...)
+
EQUITY
Withdr. + + Service - Sal.
Rev.
Exp.
+
-
Rent
Exp.
-
Utilities
Exp.

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