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    Maria Lange opened a medical practice called M. Lange, M.D., P.C. in July. She invested $45,000 in cash and common stock. During the month, she purchased land for $35,000 and supplies for $2,000 on credit. By month's end, Lange had earned $7,000 in revenue from patients but incurred $3,000 in expenses, and paid $1,500 toward supplies.

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    Maria Lange opened a medical practice called M. Lange, M.D., P.C. in July. She invested $45,000 in cash and common stock. During the month, she purchased land for $35,000 and supplies for $2,000 on credit. By month's end, Lange had earned $7,000 in revenue from patients but incurred $3,000 in expenses, and paid $1,500 toward supplies.

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    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
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    68 views1 page

    Acct hmwk1

    Uploaded by

    ellawry
    Maria Lange opened a medical practice called M. Lange, M.D., P.C. in July. She invested $45,000 in cash and common stock. During the month, she purchased land for $35,000 and supplies for $2,000 on credit. By month's end, Lange had earned $7,000 in revenue from patients but incurred $3,000 in expenses, and paid $1,500 toward supplies.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 1

    Maria Lange opened a medical practice.

    During July, the first month of operation,


    the business, named M. Lange, M. D., P.C. experienced the following events:

    07/01 Lange invested $45,000 in the business by opening a bank account in


    the name of M. Lange, M. D., P.C. The corporation issued common
    stock to Lange.

    07/02 Paid $35,000 cash for land.

    07/03 Purchased medical supplied for $2,000 on account.

    07/07 Officially opened for business.

    07/08-31 During the rest of the month, Lange treated patients and earned
    service revenue of $7,000, receiving cash.

    07/08-31 Paid cash expenses: employee salaries, $1,700; office rent, $1,000;
    utilities,$300.

    07/28 Sold supplies to another physician for the costs of those supplies,
    $500.

    07/31 Paid $1,500 on account.

    Requirements:

    1. Prepare journal entries for the preceding transactions.


    2. Prepare income statement for the month ended 07/31/XX
    3. Prepare the balance sheet for 07/31/XX

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