35PGB_2
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 2. Post the journal entries to the T-accounts, using transaction dates as posting references in the ledger accounts. Label the balance of each account Bal.
Step-by-Step Solution
VerifiedThe revenues for which services have not been provided yet are known as unearned revenue and required t-accounts are prepared in step 2.
Unearned revenue is defined as the amount of money received in advance for the exchange of services in the future.
Cash | |
Mar 1 $62,000 | $570 Mar 5 |
Mar 19 $27,000 | $14,000 Mar 9 |
Mar 31 $1,000 | $1,400 Mar 22 |
Mar 31 $6,700 | $7,100 Mar 31 |
| $2,100 Mary 31 |
| $1,500 Mar 31 |
| $350 Mar 31 |
Bal. $69,680 |
|
Accounts Receivables | |
Mar 31 $5,800 |
|
Balance $5,800 |
|
|
|
Office Supplies | |
Mar 10 $1,500 |
|
|
|
Bal $1,500 |
|
Land | |
Mar 9 $14,000 |
|
|
|
Bal. $14,000 |
|
Accounts Payable | |
Mar 22 $1,400 | $1,500 Mar 10 |
|
|
| $100 Bal. |
Advertising Payable | |
| $220 Mar 28 |
|
|
| $220 Bal. |
Unearned Revenue | |
| $1,000 Mar 31 |
|
|
| $1,000 Bal. |
Notes Payable | |
| $27,000 Mar 19 |
|
|
| $27,000 Bal. |
Common Stock | |
| $62,000 Mar 1 |
|
|
| $62,000 Bal. |
Dividends | |
Mar 31 $7,100`` |
|
|
|
Bal. $7,100 |
|
Service Revenue | |
| $6,700 Mar 31 |
| $5,800 Mary 31 |
| 12,500 Bal. |
Salaries Expense | |
Mar 31 $2,100 |
|
|
|
Bal. $2,100 |
|
Rent Expense | |
Mar 5 $570 |
|
Mar 31 $1,500 |
|
|
|
Bal. 2,070 |
|
Utilities Expense | |
Mar 31 $350 |
|
|
|
Bal. $350 |
|
Advertising Expense | |
Mar 28 $220 |
|
|
|
Bal. $220 |
|