Transactions and financial statements (accrual basis) for the month of December 2014

Using only five accounts – Expense, Liabilities, Revenue, Net assets and Assets – record the following transactions and prepare a balance sheet and statement of operations for the M. L. Stave Clinic including the proper statement headings, formats and lines.

a) The founders invest $6000 in cash.

b) The clinic pays $2500 cash for supplies which are used. (There is no inventory.)

c) The clinic provided $4000 (estimated collection) in patient services. It collected $2000 during the month. The balance will be collected in the future.

d) Clinic employees were paid, in cash, salaries and no benefits totaling $2400.

e) They purchased a piece of equipment for $2000. They paid $1000 and owe the vendor $1000, due in 60 days