Question

PROBLEM 3-3A Following is the chart of accounts of the C. Lucern Clinic Assets Revenue 111 Cash 411 Professional Fees 113 Accounts Receivable 115 Supplies Expenses 117 Prepaid Insurance 511 Salary Expense 124 Equipment 512 Rent Expense 513 Laboratory Expense 514 Utilities Expense (Continued)

Answer 1

Solution: Part 1 Journal Entries Particulars Credit Date Particulars 1-Jul Equipment A/c Dr. Debit $ 3,660 To Account Payables A/C To Cash A/C $ $ 2,000 1,660 3-Jul Rent Expense A/c Dr. $ 1,300 To Bank A/C $ 1,300 5-Jul Cash A/c Dr. $ 360 To Accounts Receivables A/C $ 360 6-Jul Supplies A/c Dr. $ 315 To Account Payables A/C $ 315 7-Jul Laboratory Expense A/c Dr. $ 1,380 To Bank A/C $ 1,380

8-Jul Insurance Expense A/c Dr. Prepaid Insurance A/c Dr. $ 221 $ 2,429 To Bank A/C $ 2,650 12-Jul Account Receivable A/c Dr. $ 5,886 To Professional Fees A/C $ 5,886 15-Jul Cash A/c Dr. $ 4,793 To Professional Fees A/C $ 4,793 16-Jul Account Payables A/c Dr. $ 518 To Equipment A/C $ 518 18-Jul Salary Expense A/c Dr. $ 2,100 To Bank A/C $ 2,100 24-Jul Telephone Expenses A/c Dr. $ 624 To Bank A/C $ 624 28-Jul Account Receivable A/c Dr. $ 7,381 To Professional Fees A/c $ 7,381

29-Jul C. Lucern, Drawing A/c Dr. $ 2,000 To Cash A/C $ 2,000 Part 2 I am not using working paper, therefore part 2 is not applicable. Part 3 Dr Date 111 Cash Account Particulars 5-Jul To Accounts Receivables A/C $ 360 15-Jul To Professional Fees A/C $ 4,793 Date Particulars 1-Jul By Equipment A/c 29-Jul By C. Lucern Drawing A/C 1,660 2,000 $ 31-Jul By Ending Balance 1,493 $ 5,153 $ 5,153

Dr Date 221 Accounts Payables Account Date $ 518 Particulars 16-Jul To Equipment A/C $ Particulars 1-Jul By Equipment A/c 6-Jul By Supplies 2,000 315 31-Jul To Ending Balance $ 1,797 $ 2,315 $ 2,315 Dr Date $ 113 Accounts Receivables Account Particulars $ Date Particulars 12-Jul To Professional Fees A/C $ 5,886 5-Jul By Cash A/C 28-Jul To Professional Fees A/C $ 7,381 31-Jul By Ending Balance 360 12,907 $ 13,267 $ 13,267

Dr Date Insurance Expense Account $ Date $ 221 Particulars Particulars 8-Jul To Bank A/C $ 31-Jul By Ending Balance 221 $ 221 $ 221 Dr Date 117 Prepaid Insurance Account Date $ 2,429 $ Particulars Particulars 8-Jul To Bank A/C $ 31-Jul By Ending Balance 2,429 $ 2,429 2,429

Dr Bank Account Date Particulars D Date Particulars 3-Jul By Rent Expense A/C 7-Jul By Laboratory Expense A/ 8-Jul By Insurance Expense A/C 8-Jul By Prepaid Insurance A/C 18-Jul By Salary Expense A/C 24-Jul By Telephone Expense A/c S $ $ 1,300 1,380 221 2,429 2,100 624 $ 31-Jul By Ending Balance $ 8,054 $ 8,054 $ 8,054 Dr Cr Date 124 Equipment Account Particulars $ Date Particulars 1-Jul To Accounts Payables A/C $ 2,000 16-Jul By Accounts Payables A/c 1-Jul To Cash A/C $ 1,660 31-Jul By Ending Balance $ $ 518 $ 3,142

31-Jul By Ending Balance 3,142 $ 3,660 $ 3,660 Dr Cr Date Particulars 411 Professional Fees Account Date Particulars 12-Jul By Accounts Receivable A/C 15-Jul By Cash A/C $ 18,060 28-Jul By Accounts Receivable A/c $ 1$ 5,886 4,793 7,381 31-Jul To Ending balance $ $18,060 $ 18,060 - Cr Date 512 Rent Expense Account Date $ 1,300 Particulars 3-Jul To Bank A/C Particulars 31-Jul By Ending Balance 1,300 $ 1,300 $ 1,300

Dr Cr Date Telephone Expense Account $ Date $ 624 Particulars 24-Jul To Bank A/C Particulars 31-Jul By Ending Balance 624 $ 624 $ 624 Dr Cr Date 511 Salary Expense Account Date $ 2,100 Particulars Particulars 18-Jul To Bank A/C $ 31-Jul By Ending Balance $ 2,100 $ 2,100 $ 2,100

Dr Cr Date 312 C. Lucern, Drawing Account $ Date Date $ 2,000 Particulars 29-Jul To Cash A/C Particulars 31-Jul By Ending Balance $ 2,000 $ 2,000 $ 2,000 Dr Date 115 Supplies Account Date $ 315 Particulars 6-Jul To Accounts Payables A/C Particulars 31-Jul By Ending Balance 315 $ 315 315

Dr Cr Date 513 Laboratory Expense Account $ Date $ 1,380 Particulars 7-Jul To Bank A/C Particulars 31-Jul By Ending Balance $ 1,380 $ 1,380 1,380

Part 4 Trial Balance Credit Debit $ 1,493 $ $ 8,054 1,797 Particulars 111 Cash Account Bank Account 221 Accounts Payables Account 113 Accounts Receivables Account Insurance Expense Account 117 Prepaid Insurance Account 124 Equipment Account 411 Professional Fees Account 512 Rent Expense Account Telephone Expense Account 511 Salary Expense Account 312 C. Lucern, Drawing Account 115 Supplies Account 513 Laboratory Expense Account $ 12,907 $ 221 | $ 2,429 $ 3,142 $ 18,060 $ 1,300 $ 624 $ 2,100 $ 2,000 IS 315 $ 1,380 Total $ 27,911 $ 27,911