Gayle Hayashi, MD, opens a medical practice. During her first month of operation, January, the clinic, named Hayashi Medical Clinic, experienced the following events.
(Click the icon to view the events.)
Analyze the effects of these events on the accounting equation of Hayashi Medical Clinic.
Analyze the events chronologically, one transaction at a time, beginning with the transaction on January 6th. For each transaction that follows the January 6 transaction, calculate the balance in each account after analyzing its effect on the accounting equation. (Complete only the necessary answer boxes for the transaction lines. Do not enter "0" in the transaction lines. For events with the same date, be sure to enter the set of transactions for each event on a separate line in the order presented in the problem. Carry down all balances to the "Bal." line, including zero balance accounts, entering a " 0 " for any zero balances. Enter a decrease in an account with a minus sign or parentheses. Abbreviations used: A/P = Accounts Payable; Capital = Gayle Hayashi, Capital; Exp. = Expense; Liab. = Liabilities; Med. = Medical; Rev. = Revenue; Sal. = Salaries; Sup. = Supplies.)
\table[[ASSETS,
=
,\table[[LIAB.],[A/P]],\table[[+],[+]],EQUITY],[Cash,+,\table[[Med.],[Sup.]],+,Land,Capital,+,\table[[Service],[Rev.]],-,\table[[Sal.],[Exp.]],-,\table[[Rent],[Exp.]],\table[[,\table[[Utilities],[Exp.]],,,,,,,,,,,,,,,],[,+,,+,,
=
,,+,,+,,-,,-,,-,]],]]
Events
Jan. 6 Hayashi invested
$250,000
in the clinic by opening a bank account in the name of Hayashi Medical Clinic.
9 Hayashi Medical Clinic paid cash for land costing
$150,000
. There are plans to build a clinic on the land. Until then, the business will rent an office.
12 The clinic purchased medical supplies for
$10,000
on account.
15 On January 15, Hayashi Medical Clinic officially opened for business.
15-31 During the rest of the month, the clinic earned professional fees of
$20,000
and recelved cash immediately.
15-31 The clinic paid cash expenses: employee salaries,
$5,000
; office rent,
$4,000
; utilities,
$500
.
28 The clinic sold supplies to another clinic at cost for
$1,000
.
31 The clinic paid
$4,000
on the account from January 12 .
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