Dr. Ansley Favata opened a medical practice specializing in physical therapy. During the first month of operation (March), the business, titled Dr. Ansley Favata, Professional Corporation (P.C.), experienced thefollowing events:(Click the icon to view the events.)Requirement1. Record the transactions in the journal of Dr. Ansley Favata, P.C. List the transactions by date and give an explanation for each transaction. (Record debits first, then credits. Select explanations on the last lineof the journal entry table. If an entry is not required, select "No entry required" on the first line of the table and leave all other fields blank.)Mar 6: Favata invested $141,000 in the business, which in turn issued its common stock to her.Journal EntryAccounts and ExplanationsMarDateDebitCreditCMore infoMar 6Mar 9Mar 12Mar 15Mar 15-31Mar 15-31Mar 31Mar 31Mar 31Favata invested $141,000 in the business, which in turn issued itscommon stock to her.The business paid cash for land costing $56,000. Favata plans to buildan 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 earnedservice revenue of $8,900, receiving cash for half the revenue earned.The business paid cash expenses: employee salaries, $3,300; officerent, $700; utilities, $1,800.The business sold medical supplies to another physician for cost of$400 and received cash.The business borrowed $32,000, signing a note payable to the bank.The business paid $1,500 on account.PrintDone

Preparation of the journal entries is the first step in the double-entry system of bookkeeping.…

Requirement Record the transactions in the journal of Dr. Ansley Favata, P.C. List the transactions by date and give an explanation for each transaction. (Record debits first, then credits. Select explanations on the last line of the journal entry table. If an entry is not required, select "No entry required" on the first line of the table and leave all other fields blank.) 1.

Requirement Record the transactions in the journal of Dr. Ansley Favata, P.C. List the transactions by date and give an explanation for each transaction. (Record debits first, then credits. Select explanations on the last line of the journal entry table. If an entry is not required, select "No entry required" on the first line of the table and leave all other fields blank.) 1.

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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