Reference no: EM13525241
Women's Health Care, Inc. is owned and operated by Dr. Carrie Mills, the sole stockholder. During January 2010, Women's Health Care engaged in the following external transactions:
1 Leased vacant space in the building to a law firm for 6 months, receiving the rent in advance, $9600.
1 Paid premium on a 1-year insurance policy, $4800.
1 Paid rent for the month on medical equipment, $4200.
7 Collected $21,900 on account from patients.
9 Purchased supplies on account, $1140.
10 Received $55,000 from Dr. Mills in exchange for common stock.
14 Paid vendors on account, $1920.
20 Provided services to patients, receiving cash at the time of service, $8200.
25 Billed patients for services provided on account, $29,700.
26 Paid utilities for the month, $925.
27 Paid miscellaneous expenses, $780.
28 Paid wages, $18,120.
31 Paid dividends to Dr. Mills, $10,000. (We have not yet covered how to journalize this transaction. Omit the transaction analysis, and record the journal entry as a debit to Dividends Declared and a credit to Cash. You should be able to complete the financial statement analysis. )