Comment on Godfrey's confession and Nancy's response to the same.
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Explanation:
Louis Dixon, a dentist, resigned from his position with a large dental group in order to begin his
own pediatric dental practice. The practice was organized as a sole proprietorship, called Louis
Dixon Pediatric Dentistry. The business transactions during September while the new venture was
being organized are listed below.
Sept. 1
Sept. 10
Dixon opened a bank account in the name of the business by depositing $50,000 cash,
which he had saved over a number of years.
Purchased a small office building located on a large lot for a total price of $182,400,
of which $106,000 was applicable to the land and $76,400 to the building. A cash
payment of $36,500 was made and a note payable was issued for the balance of the
purchase price.
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