Sandy Moynihan, MD, opened a medical practice. The business completed the following transactions Jul 1 Moynihan invested $32,000 cash to start her medical practice. The business issued common stock to Moyniharn 2 Purchased medical supplies on account totaling $9,000. 3 Paid monthly office rent of $5,000 6 Recorded $8,500 revenue (in cash) for service rendered to patient:s After these transactions, how much cash does the business have to work with? Use a T-account to show your answer. Begin by posting the transactions, using the date as a posting reference.Then, label and calculate the ending balance, using “Bal” as the posting reference Cash
Solution :- Cash
|Date||Narrative||Debit ($)||Date||Narrative||Credit ($)|
|Jul 1||Capital||32000||Jul 3||Rent||5000|
|Jul 6||Service revenue||8500||Bal (C/F)||35500|
Notes :- i). Bal (C/F) stands for balance to be carried forward in the next month.
ii). Service supplied A/c will be debited and Accounts payable A/c will be credited (by $ 9,000) for recording the transaction occurred on July 2. Accordingly, there will not be any impact of transaction (occurred on the July 2) on the Cash (T-account) prepared at above.