Question

Please solve question 2

10 MUMS Dr. McMuffin has a medical clinic formed as a corporation that provides specialty care services to patients. The balances in the accounts as of January 1, 2019 are as follows: Cash 68,000 122,000 71,200 Accounts Receivable Office Supplies Building Land Office Fixtures and Equipment Medical Instruments Accounts Payable 47.000 Notes Payable 44,000 Contributed Capital 6,200 Retained Earnings 87.000 Patient Service Revenue 51,000 Income Tax Expense 28,000 Compensation Expense 40,000 Insurance Expense 42,000 Utilities Expense Below are the business transactions for January for Dr. McMuffin's clinic: JANUARY Purchased Office Fixtures and Equipment for $20,000. The clinic paid $10,000 in cash and financed the remaining balance with debt by signing a note promising to pay in three years. Ignore interest. 2 Received $65,000 of cash from an investor in exchange for shares of stock in the clinic. Billed clients $75,000 for services rendered. Of this amount, $10,000 was received in cash, and the balance was billed on account (due in 30 days). 8 Received $25,000 from customers on previously billed medical services (.e., medical services provided in 2018). 10 Purchased office supplies on account expected to last a few months for $2,000. 15 Purchased medical instruments for $12,000 in cash. 20 Received a $2,000 invoice for insurance coverage in January. The entire amount is due to be paid on February 26. You can consider this an Account Payable. 26 Paid $5,000 in income taxes for taxes incurred during January, 27 30 Paid suppliers $7,000 included in accounts payable. Paid Light Co. $3,000 for utilities used in the clinic during the month of January 31 Paid employees $25,000 in salaries for work done during the month of January

Answer 1

Date Jan 1 Particular farsiture All office Dr 75000 In the books of Dor Mc Mubbin. Jowrnal Entry for month obat Sanuary, 2018 Amount Pาจนหม Debit credit 20000 To Cash AR 1000 Topos To Note payable Ale Jan 2 Cash AIC Dr 65000 65000 To contributed capital (Being amount received for investment in this stock in clinic) Jan 5 Cash Al 10oes Account receivable. Ale 650ed To service revenue Cash Ale Dr125000 To Account receinable All 2spero 10 office supply Al 2000 To account penyable All 2000 is Medical instrument the Dr12000 To cash 12000 20 Insurance charges Al 2000 I To Account payable 2000 26 Income tanes All To cash soes 27 Account payable Ale To Cash Al Tere or 7000

3000 3000 Jan 30 utilities expenses Alc To Cash Ale 31 salaries All To cash : or 25000 25000 2 Posting to lealger All from Journal endries. I to By office to Cash Account Date Particular Amount Dake Particular Amount Jan 1 To Balance old 47000 In I By office furniture loooo 2 To Capital contribution 65000 is By Medical Instrument 12000 5 To service revenue I loved 8 '5000 To Account receivable / 26 By Prcome tani 25000 27 By Account poryable 7000 30 By Utilities exp 3000 31 By Salaries Arc 25000 Jan 31 By Balance cld 85000 Dade Particuley 149000 747000. Capital Contribution Ale Amount Date Particulas Amount Jan 1 By Balance Bld 122000 Jan 2 By cash - received from 65000 investors 187000 Jan 31 To Balance crd 189000 187000

Date Jan 1 5 Particular To Berlance bld To service revenue Account receinables All Amount Date Particular 44000 Jan 8 By Cash At Amoun 21000 650 Jan 31 By Balance cld 840000 10900 109000 - Date Jani 10 Office Supplies All Ponticuley 1 Amount Deate Particular To Balance bold 6200 To Account payable 2000 Jan 31 By Balance eld Amount 8200 | Domorant ate Jan 1 1 Particular To Balance bld To Cash To Note payable 48000 48000 I Amount Date Ponticular Jan 1 To Balance Bld 1s To Cash Ale Office finiture & equipmental Amount Date Penticular 28000 100n 10000 Jan 31 By Balance cld 48000 Medical Instrument Ale Amount Date Particular 40000 (12000 Jan 31 By Balance cld 52000 Note Payable All Amount Date Particular 78000 Fan I By Balance bld By office fature S2000 52000 Date Particular Jan 31 To Balance eld Amount I 68000 loooo

Dale Particular Account Payable All Pationt seancenderen Dorbunt Date Particular 17000 Jan 1 By Balance 6ld Amount Jan 27 To 42000 Cash dan 31 to Balance old 10 By office supply 2000 2000 | 2390 20 A wone conve 46.000 46000 Patient service revenue Al I Amount Deutel Pourt Amount Jan 5 By cash AL Toon 75000 By Account receinal 65000 Jan 31 To Balance cld Amonat Jan 26 To cash Incomentan expenses Are Am Date Pont $200 T Jan 31 By Berlance cl 5000 med sro Insurance expenses Are Amon Dete Part Jan 20 To Account payable 2000 Amf po 2000 poin' Bul Balanceck 2000 Jan 30 To Cash Ale UKLe, espehДед АН- Amount Date Don 2000 In 31 By Balance old 3000 3000 3000 T Dont compensation Als Date Particular Jan 31 To cash Amt 2000 Date Particulen All Jan 31 By Bal cld esnes 200 eos