Reference no: EM132754024

Question - Dr. Rebecca Gray opened a medical practice specializing in physical therapy. During the first month of operations (January 2018), the business titled Dr. Rebecca Gray, Professional Corporation (P.C.), experienced the following events:

01/01: The business issued common stock for $170,000.

01/09: The business paid cash for land costing $63,000.

01/12: The business purchased medical supplies for $1,900 on account.

01/19: Gray treated patients and earned service revenue of $9,600, receiving cash for half the revenue earned.

01/21: The business sold supplies to another physician for cost of $700.

01/24: The business paid cash expenses: employee salaries, $3,300; office rent, $1,200; utilities, $900.

01/28: The business borrowed $35,000, signing a note payable to the bank.

01/31: The business paid $500 on account.

Required -

1. Record the transactions using the template (similar to the FSET template used for the in-class problem 1).

2. Produce the company's income statement, statement of retained earnings, balance sheet, and statement of cash flows on January 31, 2018. Ignore income taxes and all adjusting transactions (e.g., assume no taxes are paid and no adjustments are required).

Notes: As this is the first month of operations, all beginning balances for this month are zeros. Use Excel (and submit an Excel file).