Question

Feb 1.            Sample invested $55,000 in the business by depositing it into the company’s bank account.

Feb 2.            Paid $46,000 cash for land.

Feb 3.            Purchased medical supplies for $1,800 on account.

Feb 4.            Officially opened for business.

Feb 5.            During the month, Sample treated patients and earned service revenue of $8,000, receiving cash.

Feb 6.            Paid cash expenses: employees’ salaries, $1,600; office rent, $900;

                       utilities, $100.

Feb 7.           Returned supplies purchased on the 3rd for the cost of those supplies, $700.

Feb 8.            Paid $1,100 on account for purchases made on Feb 3.

Requirement:

1. Prepare the journal entries to record the above transactions.

Answer 1

Date	Account Titles	Debit	Credit
1-Feb	Cash	$           55,000
	Common Stock		$            55,000
2-Feb	Land	$           46,000
	Cash		$            46,000
3-Feb	Medical Supplies	$             1,800
	Accounts Payable		$              1,800
4-Feb	No entry
5-Feb	Cash	$             8,000
	Service Revenue		$              8,000
6-Feb	Salaries Expense	$             1,600
	Rent Expense	$                900
	Utilities Expense	$                100
	Cash		$              2,600
7-Feb	Accounts Payable	$                700
	Medical Supplies		$                  700
8-Feb	Accounts Payable	$             1,100
	Cash		$              1,100

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