29PGA_3
Question
Question: Journalizing transactions, posting journal entries to T-accounts, and preparing a trial balance
Vince York practices medicine under the business title Vince York, M.D. During July, the medical practice completed the following transactions:
Jul. 1 York contributed \(63,000 cash to the business in exchange for common stock.
5 Paid monthly rent on medical equipment, \)510.
9 Paid \(23,000 cash to purchase land to be used in operations.
10 Purchased office supplies on account, \)1,600.
19 Borrowed \(22,000 from the bank for business use.
22 Paid \)1,100 on account.
28 The business received a bill for advertising in the daily newspaper to be paid in August, \(240.
31 Revenues earned during the month included \)6,400 cash and \(6,000 on account.
31 Paid employees’ salaries \)2,200, office rent \(1,900, and utilities \)560. Record as a compound entry.
31 The business received \(1,120 for medical screening services to be performed next month.
31 Paid cash dividends of \)7,200.
The business uses the following accounts: Cash; Accounts Receivable; Office Supplies; Land; Accounts Payable; Advertising Payable; Unearned Revenue; Notes Payable; Common Stock; Dividends; Service Revenue; Salaries Expense; Rent Expense; Utilities Expense; and Advertising Expense.
Requirements 3. Prepare the trial balance of Vince York, M.D., as of July 31, 2018.
Step-by-Step Solution
VerifiedThe salaries expense is the compensation to the employees of the company and the required trial balance is prepared with a total of $99,260
The salaries expense is defined as the cost incurred by the company in order to compensate their employees.
Vince York | ||
Trial Balance | ||
July 31, 2018 | ||
Account Titles | Debit ($) | Credit ($) |
Cash | $56,050 |
|
Accounts Receivables | $6,000 |
|
Office Supplies | $1,600 |
|
Land | $23,000 |
|
Accounts Payable |
| $500 |
Advertising Payable |
| $240 |
Unearned revenue |
| $1,120 |
Notes Payable |
| $22,000 |
Common stock |
| $63,000 |
Dividends | $7,200 |
|
Service Revenue |
| $12,400 |
Salaries Expense | $2,200 |
|
Rent expense | $2,410 |
|
Utilities expense | $560 |
|
Advertising Expense | $240 |
|
|
|
|
Total | $99,260 | $99,260 |