requirement\n1. record the transactions in the journal of dr. tessa samoa, p.c. list the transactions by…

requirement\n1. record the transactions in the journal of dr. tessa samoa, p.c. list the transactions by date and give an explanation for each transaction.\n(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.)\ndecember 6: samoa invested $150,000 in the business, which in turn issued its common stock to her.\ndate\taccounts and explanations\tdebit\tcredit\nevents\ndecember 6\tsamoa invested $150,000 in the business, which in turn issued its common stock to her.\ndecember 9\tthe business paid cash for land costing $64,000. samoa plans to build an office building on the land.\ndecember 12\tthe business purchased medical supplies for $2,400 on account.\ndecember 15\tdr. tessa samoa, p.c., officially opened for business.\ndecember 15 - 31\tduring the rest of the month, samoa treated patients and earned service revenue of $9,800, receiving cash for half the revenue earned.\ndecember 15 - 31\tthe business paid cash expenses: employee salaries, $3,800; office rent, $900; utilities, $400.\ndecember 31\tthe business sold medical supplies to another physician for cost of $1,000 and received cash.\ndecember 31\tthe business borrowed $34,000, signing a note - payable to the bank.\ndecember 31\tthe business paid $1,300 on account.

requirement\n1. record the transactions in the journal of dr. tessa samoa, p.c. list the transactions by date and give an explanation for each transaction.\n(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.)\ndecember 6: samoa invested $150,000 in the business, which in turn issued its common stock to her.\ndate\taccounts and explanations\tdebit\tcredit\nevents\ndecember 6\tsamoa invested $150,000 in the business, which in turn issued its common stock to her.\ndecember 9\tthe business paid cash for land costing $64,000. samoa plans to build an office building on the land.\ndecember 12\tthe business purchased medical supplies for $2,400 on account.\ndecember 15\tdr. tessa samoa, p.c., officially opened for business.\ndecember 15 - 31\tduring the rest of the month, samoa treated patients and earned service revenue of $9,800, receiving cash for half the revenue earned.\ndecember 15 - 31\tthe business paid cash expenses: employee salaries, $3,800; office rent, $900; utilities, $400.\ndecember 31\tthe business sold medical supplies to another physician for cost of $1,000 and received cash.\ndecember 31\tthe business borrowed $34,000, signing a note - payable to the bank.\ndecember 31\tthe business paid $1,300 on account.

Answer

Explanation:

Step1: December 6 transaction

The business receives cash and issues common - stock. Cash is an asset that increases (debit) and common stock is an equity account that increases (credit). Debit: Cash $150,000 Credit: Common Stock $150,000 Explanation: Investment of cash by owner in exchange for common stock.

Step2: December 9 transaction

The business pays cash for land. Cash (asset) decreases (credit) and Land (asset) increases (debit). Debit: Land $64,000 Credit: Cash $64,000 Explanation: Purchase of land for building an office.

Step3: December 12 transaction

The business purchases medical supplies on account. Medical Supplies (asset) increases (debit) and Accounts Payable (liability) increases (credit). Debit: Medical Supplies $2,400 Credit: Accounts Payable $2,400 Explanation: Purchase of medical supplies on credit.

Step4: December 15 - 31 revenue transaction

Half of the $9,800 service revenue is received in cash and half is on account. Cash (asset) increases (debit) by $4,900, Accounts Receivable (asset) increases (debit) by $4,900 and Service Revenue (revenue) increases (credit) by $9,800. Debit: Cash $4,900 Debit: Accounts Receivable $4,900 Credit: Service Revenue $9,800 Explanation: Service revenue earned, part - cash and part - credit.

Step5: December 15 - 31 expense transaction

The business pays cash for employee salaries, office rent and utilities. Salaries Expense, Rent Expense and Utilities Expense (expenses) increase (debit) and Cash (asset) decreases (credit). Debit: Salaries Expense $3,800 Debit: Rent Expense $900 Debit: Utilities Expense $400 Credit: Cash $5,100 Explanation: Payment of operating expenses.

Step6: December 31 medical supplies sale transaction

The business sells medical supplies for $1,000 and receives cash. Cash (asset) increases (debit) and Cost of Goods Sold (expense) increases (debit) by $1,000, and Medical Supplies (asset) decreases (credit) by $1,000. Debit: Cash $1,000 Debit: Cost of Goods Sold $1,000 Credit: Medical Supplies $1,000 Explanation: Sale of medical supplies and recognition of cost.

Step7: December 31 borrowing transaction

The business borrows money by signing a note payable. Cash (asset) increases (debit) and Notes Payable (liability) increases (credit). Debit: Cash $34,000 Credit: Notes Payable $34,000 Explanation: Borrowing from bank by signing a note.

Step8: December 31 payment on account transaction

The business pays cash on account. Accounts Payable (liability) decreases (debit) and Cash (asset) decreases (credit). Debit: Accounts Payable $1,300 Credit: Cash $1,300 Explanation: Payment on accounts payable.

Answer:

Date Accounts and Explanations Debit Credit
December 6 Cash; Investment of owner in exchange for common stock $150,000
Common Stock $150,000
December 9 Land; Purchase of land for building an office $64,000
Cash $64,000
December 12 Medical Supplies; Purchase of medical supplies on credit $2,400
Accounts Payable $2,400
December 15 - 31 Cash; Service revenue earned, part - cash and part - credit $4,900
Accounts Receivable $4,900
Service Revenue $9,800
December 15 - 31 Salaries Expense; Payment of operating expenses $3,800
Rent Expense $900
Utilities Expense $400
Cash $5,100
December 31 Cash; Sale of medical supplies and recognition of cost $1,000
Cost of Goods Sold $1,000
Medical Supplies $1,000
December 31 Cash; Borrowing from bank by signing a note $34,000
Notes Payable $34,000
December 31 Accounts Payable; Payment on accounts payable $1,300
Cash $1,300