Question: Dr. Schekter, DVM, opened a veterinary clinic on May 1, 2011. The business transactions for May are shown below: May 1. Dr. Schekter invested $400,000 cash in the business in exchange for 5,000 shares of capital stock. May 4. Land and a building were purchased for $250,000. Of this amount, $70,000 applied to the land, and $180,000 to the building. A cash payment of $100,000 was made at the time of the purchase, and a note payable was issued for the remaining balance. May 9. Medical instruments were purchased for $130,000 cash. May 16. Office fixtures and equipment were purchased for $50,000. Dr. Schekter paid $20,000 at the time of purchase and agreed to pay the entire remaining balance in 15 days. May 21. Office supplies expected to last several months were purchased for $5,000 cash. May 24. Dr. Schekter billed clients $2,200 for services rendered. Of this amount, $1,900 was received in cash, and $300 was billed on account (due in 30 days). May 27. A $400 invoice was received for several radio advertisements aired in May. The entire amount is due on June 5. May 28. Received a $100 payment on the $300 account receivable recorded May 24. May 31. Paid employees $2,800 for salaries earned in May. requried: journal general entries
Question:
Dr. Schekter, DVM, opened a veterinary clinic on May 1, 2011. The business transactions for May are shown below:
May 1. Dr. Schekter invested $400,000 cash in the business in exchange for 5,000 shares of capital stock.
May 4. Land and a building were purchased for $250,000. Of this amount, $70,000 applied to the land, and $180,000 to the building. A cash payment of $100,000 was made at the time of the purchase, and a note payable was issued for the remaining balance.
May 9. Medical instruments were purchased for $130,000 cash.
May 16. Office fixtures and equipment were purchased for $50,000. Dr. Schekter paid $20,000 at the time of purchase and agreed to pay the entire remaining balance in 15 days.
May 21. Office supplies expected to last several months were purchased for $5,000 cash.
May 24. Dr. Schekter billed clients $2,200 for services rendered. Of this amount, $1,900 was received in cash, and $300 was billed on account (due in 30 days).
May 27. A $400 invoice was received for several radio advertisements aired in May. The entire amount is due on June 5.
May 28. Received a $100 payment on the $300
May 31. Paid employees $2,800 for salaries earned in May.
requried:
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