Reference no: EM131691586

Question: (Analyzing transactions on a work sheet) Sally Golfo, a registered nurse, opens a business called Sally's Elder Care. Golfo plans to care for the elderly herself in a facility that she will rent. The following transactions occurred during July 2013, her first month in business. Analyze these transactions on a work sheet similar to that illustrated in the text. You will need columns for Cash, Accounts receivable, Prepaid rent, Furniture, Notes payable, Accounts payable, and Sally Golfo, Capital.

1 Ms. Golfo invested $5,000 of her own money to start the business.

1 She borrowed $20,000 from the bank to provide her with additional cash. She agreed to repay the bank $1,000 on the last day of every month, starting July 31, with interest at the rate of 6 percent a year on the unpaid balance.

1 She rented the house next to hers for a 3-month period, paying a total of $6,000, to provide a facility to care for her patients.

1 She purchased furniture for the facility. She received an invoice for $4,800, payable in 10 days.

10 She paid the $4,800 invoice for the furniture.

18 She paid her assistant $800 for 2 weeks' work.

20 During the month, she billed her clients $12,000 for services rendered.

25 She received $9,000 in cash from the clients who were previously billed.

30 At month-end, she received a bill for electric service in the amount of $300. She will pay the bill in August.

30 During the month, she paid $500 for food to provide lunch to her clients.

31 She paid the bank $1,100 on the borrowing.

Of that amount, $1,000 was for the principal payment on the loan, and $100 was for interest.