Requirement 1. Analyze the effects of these events on the accounting equation of the medical practice of Dr. Laura Smith, P.C. Begin with the first transaction on January 6. (Use parentheses or a minus sign when decreasing accounts. If an input field is not used in the table leave the field empty; do not enter a zero. Enter the transactions in the same order as they appear in the original list.) Liabilities + Stockholders' Equity Assets Accts Accts Note Medical Cash + Rec. + Supplies + Land = Pay. + Payable + Stock + Earnings 146.000 Jan 6 146,000 9 (60,000) 12 15 15-31 4,650 15-31 (4.500) More info Jan Jan 4,650 Jan 12 Jan 15 Jan 15-31 Jan 15-31 Jan Jan Jan 2,100 60,000 Common Retained Type of Equity Transaction Issued stock 2,100 6 Smith invested $146,000 in the business, which in turn issued its common stock to her. 9 The business paid cash for land costing $60,000. Smith plans to build an office building on the land. The business purchased medical supplies for $2,100 on account. 9,300 Service revenue 4500 Salary expense Dr. Laura Smith, P.C., officially opened for business. During the rest of the month, Smith treated patients and earned service revenue of $9,300, receiving cash for half the revenue earned. The business paid cash expenses: employee salaries, $2,800; office rent, $1,200; utilities, $500. (Record the cash amount as a total and identify and record any other amounts separately.) The business sold supplies to another physician for cost of $900 and received cash. 31 31 The business borrowed $31,000, signing a note payable to the bank. 31 The business paid $1,100 on account. - X Requirements. 1. Analyze the effects of these events on the accounting equation of the medical practice of Dr. Laura Smith, P.C. 2. After completing the analysis, answer these questions about the business. a. How much are total assets? b. How much does the business expect to collect from patients? c. How much does the business owe in total? d. How much of the business's assets does Smith really own? e. How much net income or net loss did the business experience during its first month of operations? Print Done X
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.
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