Question

Learning Objectives 3, 4 P2-29A Journalizing transactions, posting journal entries to T-accounts, and preparing a trial balance Vince York practices medicine under the business title Vince York, M.D. During July, the medical practice completed the following transactions: 2. Cash Balance $56,050 Jul. 1 5 9 10 19 22 28 York contributed $63,000 cash to the business in exchange for common stock. Paid monthly rent on medical equipment, $510. Paid $23,000 cash to purchase land to be used in operations. Purchased office supplies on account, $1,600. Borrowed $22,000 from the bank for business use. Paid $1,100 on account. The business received a bill for advertising in the daily newspaper to be paid in August, $240. Revenues earned during the month included $6,400 cash and $6,000 on account. Paid employees' salaries $2,200, office rent $1,900, and utilities $560. Record as a compound entry. The business received $1,120 for medical screening services to be performed next month. Paid cash dividends of $7,200. 31 31 31 31
Please explain your question. Thank you.

Answer 1

Requirement 1:

Date	Account title and explanation	Debit	Credit
July 1	Cash	$63,000
	Common stock		$63,000
	[Issuance of common stock]
July 5	Rent expense	$510
	Cash		$510
	[Cash paid for rent]
July 9	Land	$23,000
	Cash		$23,000
	[Purchase of land for cash]
July 10	Office supplies	$1,600
	Accounts payable		$1,600
	[Purchase supplies on account]
July 19	Cash	$22,000
	Notes payable		$22,000
	[Borrowed from bank]
July 22	Accounts payable	$1,100
	Cash		$1,100
	[Cash paid for accounts payable]
July 28	Advertisement expense	$240
	Advertisement payable		$240
	[Accrued advertisement expense]
July 31	Cash	$6,400
	Accounts receivable	$6,000
	Service revenue		$12,400
	[Service performed for cash and on account]
July 31	Salaries expense	$2,200
	Rent expense	$1,900
	Utilities expense	$560
	Cash		$4,660
	[Paid salaries, rent and utilities]
July 31	Cash	$1,120
	Unearned revenue		$1,120
	[Cash received in advance for services]
July 31	Cash dividends	$7,200
	Cash		$7,200
	[Cash paid for 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
July 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