35PGB_1
Question
Question: Journalizing transactions, posting journal entries to T-accounts, and preparing a trial balance Victor Yang practices medicine under the business title Victor Yang, M.D. During March, the medical practice completed the following transactions:
Mar. 1 Yang contributed \(62,000 cash to the business in exchange for common stock.
5 Paid monthly rent on medical equipment, \)570.
9 Paid \(14,000 cash to purchase land to be used in operations.
10 Purchased office supplies on account, \)1,500.
19 Borrowed \(27,000 from the bank for business use.
22 Paid \)1,400 on account.
28 The business received a bill for advertising in the daily newspaper to be paid in April, \(220.
31 Revenues earned during the month included \)6,700 cash and \(5,800 on account.
31 Paid employees’ salaries \)2,100, office rent \(1,500, and utilities \)350. Record as a compound entry.
31 The business received \(1,000 for medical screening services to be performed next month.
31 Paid cash dividends of \)7,100.
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 1. Journalize each transaction. Explanations are not required.
Step-by-Step Solution
VerifiedA compound is an entry with various debits and credits and required journal entry is passed in step 2.
Acompound journal entry is defined as a journal entry that has more than one item on the debit or credit side.
| Journal entry |
|
|
Date | Particulars | Debit ($) | Credit ($) |
March |
|
|
|
1 | Cash | $62,000 |
|
| Common Stock |
| $62,000 |
|
|
|
|
5 | Rent expense | $570 |
|
| Cash |
| $570 |
|
|
|
|
9 | Land | $14,000 |
|
| Cash |
| $14,000 |
|
|
|
|
10 | Office Supplies | $1,500 |
|
| Accounts Payables |
| $1,500 |
|
|
|
|
19 | Cash | $27,000 |
|
| Notes Payable |
| $27,000 |
|
|
|
|
22 | Accounts Payable | $1,400 |
|
| Cash |
| $1,400 |
|
|
|
|
28 | Advertising Expense | $220 |
|
| Advertising Payable |
| $220 |
|
|
|
|
31 | Cash | $6,700 |
|
| Accounts Receivables | $5,800 |
|
| Service Revenue |
| $12,500 |
|
|
|
|
31 | Salaries Expense | $2,100 |
|
| Rent Expense | $1,500 |
|
| Utilities Expense | $350 |
|
| Cash |
| $3,950 |
|
|
|
|
31 | Cash | $1,000 |
|
| Unearned Revenue |
| $1,000 |
|
|
|
|
31 | Dividends | $7,100 |
|
| Cash |
| $7,100 |
|
|
|
|