Papaw Health Care Inc. is owned and operated by Dr. Richard Byrne, the sole stockholder. During October 2004, Papaw Health Care entered into the following transactions:
Received $4,500 from Embark Company as rent for the use of a vacant office in Papaw Health Care’s building. Embark paid the rent six months in advance.
Paid $2,400 for an insurance premium on a one-year, general business policy.
Purchased supplies of $1,200 on account.
Collected $5,100 for services provided to customers on account.
Paid creditors $900 on account.
Invested an additional $25,000 in the business in exchange for capital stock.
Billed patients $13,600 for services provided on account.
Received $3,800 for services provided to customers who paid cash.
Paid expenses as follows: wages, $7,000; utilities, $2,000; rent on medical equipment, $1,500; interest, $125; miscellaneous, $300.
Paid dividends of $3,000 to stockholders (Dr. Byrne).
Analyze and record the October transactions for Papaw Health Care Inc. Using the following format, record each transaction by date and as a plus or minus in the appropriate accounts. The October 1, 2004 balances are shown in the form.