Emerald Health Care Inc. is owned and operated by Dr. Julie Weinstein, the sole stockholder. During March 2009, Emerald Health Care entered into the following transactions:
March 1 - Received $12,000 from Moloney Company as rent for the use of a vacant office in Emerald Health Care’s building. Moloney paid the rent six months in advance.
March 1 – Paid $5,400 for an insurance premium on a general business policy.
March 6 – Purchased supplies of $1,425 on account.
March 9 – Collected $13,500 for services provided to customers on account.
March 11 – Paid creditors $2,400 on account.
March 18 – Invested an additional $40,000 in the business in exchange for capital stock.
March 20 – Billed patients $37,200 for services provided on account.
March 25 – Received $10,000 for services provided to customers who paid cash.
March 30 – Paid expenses as follows: wages, $18,000; utilities, $5,250; rent on medical equipment, $4,000; interest, $400; and miscellaneous, $1,000.
March 30 – Paid dividends of $3,000 to stockholders (Dr. Weinstein).
Instructions:
Analyze and record the March transactions for Emerald Health Care Inc. using the integrated financial statement framework. Record each transaction by date and show the balance for each item after each transaction. The March 1, 2009 balances for the balance sheet are shown below.
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