A friend of your family, Nancy Chen, has just graduated

A friend of your family, Nancy Chen, has just graduated from dental school and is opening up her new practice. To do this, she has formed a called Chen Dental Services Ltd. Revenues from the practice will be earned by providing dental services to individuals. Expenses will pertain to dental supplies, insurance, rent, utilities, and salaries. This is the first time that Nancy has operated a business and she needs your guidance on how to set up an accounting information system.

Instructions

Write a memo to Nancy in which you explain and illustrate the steps in the accounting cycle for this type of company. Be sure to also mention the accounts that should be set up for the company.

 

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