Question

Vince York practices medicine under the business title Vince York, M.D. During July, the medical practice completed the following transactions: 2. Cash Balance 556,050 Jul. 1 York contributed $63,000 cash to the business in exchange for common stock Paid monthly rent on medical equipment, 5510. 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. Revenues earned during the month included 56,400 cash and $6,000 on account. Paid employees' salaries $2,200, office rent 51,900, 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. 31 31 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 cach transaction. Explanations are not required. 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. 3. Prepare the trial balance of Vince York, M.D. as of July 31, 2018

Answer 1

Requirement 1:

Date	Account title and Explanation	Debit	Credit
July 1	Cash	$63,000
	Common stock		$63,000
	[To record issuance of common stock for cash]
July 5	Rent expense	$510
	Cash		$510
	[To record payment of rent expense]
July 9	Land	$23,000
	Cash		$23,000
	[To record purchase of land]
July 10	Office supplies	$1,600
	Accounts payable		$1,600
	[To record purchased office supplies on account]
July 19	Cash	$22,000
	Notes payable		$22,000
	[To record cash borrowed from bank]
July 22	Accounts payable	$1,100
	Cash		$1,100
	[To record cash paid for accounts payable]
July 28	Advertising expense	$240
	Advertising payable		$240
	[To record advertising expense to be paid in April]
July 31	Cash	$6,400
	Accounts receivable	$6,000
	Service revenue		$12,400
	[To record services performed for cash and on account]
July 31	Salaries expense	$2,200
	Rent expense	$1,900
	Utilities expense	$560
	Cash		$4,660
	[To record payment of salaries,rent and utilities]
July 31	Cash	$1,120
	Unearned revenue		$1,120
	[To record advance received from customers]
July 31	Cash dividends	$7,200
	Cash		$7,200
	[To record payment of cash dividends]

Requirement 2:

Cash					Common stock
July 1	$63,000	July 5	$510				July 1	$63,000
July 19	$22,000	July 9	$23,000				Bal.	$63,000
July 31	$6,400	July 22	$1,100
July 31	$1,120	July 31	$4,660		Dividends
		July 31	$7,200		July 31	$7,200
Bal.	$56,050				Bal.	$7,200
Accounts receivable					Service revenue
July 31	$6,000						July 31	$12,400
Bal.	$6,000						Bal.	$12,400
Office supplies					Salaries expense
July 10	$1,600				July 31	$2,200
Bal.	$1,600				Bal.	$2,200
Land					Rent expense
July 9	$23,000				July 5	$510
Bal.	$23,000				July 31	$1,900
					Bal.	$2,410
Accounts payable
July 22	$1,100	July 10	$1,600		Utilities expense
		Bal.	$500		July 31	$560
					Bal.	$560
Advertising payable
		July 28	$240		Advertising expense
		Bal.	$240		July 28	$240
					Bal.	$240
Unearned revenue
		July 31	$1,120
		Bal.	$1,120
Notes payable
		July 19	$22,000
		Bal.	$22,000

Requirement 3:

Trial Balance
For the month ended Mar 31,2018
Account title	Debit	Credit
Cash	$56,050
Accounts receivable	$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