35PGB_3
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 3. Prepare the trial balance of Victor Yang, M.D., as of March 31, 2018.
Step-by-Step Solution
VerifiedThe advertising payable is the amount of adverting expense incurred but not yet paid and the required trial balance is prepared with a total of $102,820
The Advertising payable is defined as the outstanding advertising expense of the business or company.
Victor Yang | ||
Trial Balance | ||
March 31, 2018 | ||
Account Titles | Debit ($) | Credit ($) |
Cash | $69,680 |
|
Accounts Receivables | $5,800 |
|
Office Supplies | $1,500 |
|
Land | $14,000 |
|
Accounts Payable |
| $100 |
Advertising Payable |
| $220 |
Unearned revenue |
| $1,000 |
Notes Payable |
| $27,000 |
Common stock |
| $62,000 |
Dividends | $7,100 |
|
Service Revenue |
| $12,500 |
Salaries Expense | $2,100 |
|
Rent expense | $2,070 |
|
Utilities expense | $350 |
|
Advertising Expense | $220 |
|
|
|
|
Total | $102,820 | $102,820 |