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On January 1, 2014, Dr. Beth Hill started a new professional corporation, Beth Hill, P.C., to practice medicine with an initial investment of $100,000 in exchange for 20,000 shares of $2 par value common stock. On June 30, 2014, the accounting records showed the following amounts:
Accounts Payable
$2,000
Accounts Receivable
$6,200
Cash
$48,100
Common stock
$ ?
Additional paid-in capital
Office Equipment
$60,000
Office Supplies
$3,500
Retained Earnings
$5,800
Notes Payable
$10,000
Requirement: 1. Calculate the amounts for common stock and additional paid-in capital. 2. Prepare a balance sheet as of June 30, 2014.
Financial Statement Analysis and Preparation
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