Analyze and record the October transactions for Papaw Health Care Inc. Using the following format,…

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:

Oct. 1

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.

1

Paid $2,400 for an insurance premium on a one-year, general business policy.

4

Purchased supplies of $1,200 on account.

5

Collected $5,100 for services provided to customers on account.

11

Paid creditors $900 on account.

18

Invested an additional $25,000 in the business in exchange for capital stock.

20

Billed patients $13,600 for services provided on account.

25

Received $3,800 for services provided to customers who paid cash.

29

Paid expenses as follows: wages, $7,000; utilities, $2,000; rent on medical equipment, $1,500; interest, $125; miscellaneous, $300.

29

Paid dividends of $3,000 to stockholders (Dr. Byrne).

Instructions

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.

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