Chapter 1, Problem 19AE

Transaction analysis (Learning Objective 5) 15-20 min.

Shavon Loreal opened a medical practice titled Shavon Loreal M.D., Inc. During August, the first month of operations, the business experienced the following events:

Aug 2	Loreal bought $60,000 of common stock in the business by opening a bank account in the name of Shavon Loreal M D., Inc.
6	The business paid $45,000 cash for land with the intention of building an office building on the land.
11	Tue business purchased medical supplies for $700 on account.
15	The business officially opened for business.
17	The business treated patients and earned service revenue of $10,000, receiving cash.
19	The business paid office rent $1,400.
22	The business sold supplies to another doctor for $300 cash, the cost of those supplies.
25	The business received a $175 utility hill in the mall. The bill will be paid in 30 days
30	The business paid $100 on account related to the August 11 purchase.

Requirement

1. 1. Analyze the effects of these events on the accounting equation of the medical practice of Shavon Loreal M.D., Inc. Use headings for Cash, Medical Supplies, Land, Accounts Payable, Common Stock, Service Revenue, Rent Expense, and Utility Expense.