Heart & Hands Clinic began business as a corporation in the current year. Several transactions which occurred early in the year are described below. Record each transaction in proper journal form, excluding written explanations.

A)Jan. 23Stockholders invested $70,000 in the business and received shares of common stock as evidence of ownership.   B)Feb. 1Rent of $1,600 was paid for the month of February.   C)Feb. 7Equipment with a cost of $3,000 was purchased on credit; payment is due in 30 days.   D)Feb. 14Fees totaling $5,400 were billed to patients; $2,900 was collected immediately and the balance of $2,500 is due within 30 days.   E)Feb. 18Full payment was made for the equipment purchased on Feb. 7th.   F)Feb. 22$1,900 was collected from patients with balances due from Feb. 14th.   G)Feb. 28Employee salaries of $3,300 were paid.

What will be an ideal response?

 DateAccountDebitCreditA)Jan. 23Cash70,000    Common Stock 70,000     B)Feb. 1Rent Expense1,600    Cash 1,600     C)Feb. 7Equipment3,000    Accounts Payable 3,000     D)Feb. 14Cash2,900   Accounts Receivable2,500    Service Revenue 5,400     E)Feb. 18Accounts Payable3,000    Cash 3,000     F)Feb. 22Cash1,900    Accounts Receivable 1,900     G)Feb. 28Salary Expense3,300    Cash 3,300

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