Assignment: Gayle Hayashi Opens Medical Clinic
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Assignment: Gayle Hayashi Opens Medical Clinic
Gayle Hayashi, M.D., opens a medical clinic. During her first month of operation, January, the clinic, entitled Hayashi Medical Clinic, experienced the following 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 received 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. Required Analyze the effects of these events on the accounting equation of Hayashi Medical Clinic. Use a format similar to that of Exhibit 1-11, Panel B, on page 20 with headings for Cash; Medical Supplies; Land; Accounts Payable; and Gayle Hayashi, Capital. Continue to the next page
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