Question

During July, Smith Veterinary Clinic Ltd. completed the following transactions: (Click the icon to view the transactions.) The clinic uses the following accounts: Cash, Accounts Receivable, Supplies, Land, Accounts Payable, Notes Payable, Common Shares, Dividends, Service Revenue, Salary Expense, Rent Expense, Utilities Expense, and Advertising Expense. Required 1. Journalize each transaction of Smith Veterinary Clinic Ltd. Explanations are not required. 2. Post to these T-accounts: Cash, Accounts Payable, and Notes Payable. More Info 3. After these transactions, how much cash does the business have? How much in total liabilities does it owe? - X Requirement 1. Journalize each transaction of Smith Veterinary Clinic Ltd. Explanations are not required. (Record debits first, then credits. Explanations are not required.) Start with the transaction on July 1st. Record the transaction for Dr. Smith depositing $22,000 cash and the business issuing common shares to her. Jul Journal Entry Date Debit Credit 1 Dr. Smith deposited $22,000 cash in the business bank account. The business issued common shares to her. 5 Paid monthly rent, S1,900 9 Paid $8,000 cash, and signed a $31,000 note payable to purchase land for an office site. 10 Purchased supplies on account, $1,000. 19 Paid $750 on account 22 Borrowed 518.500 from the bank for business use. Dr. Smith signed a note payable to the bank in the name of the business. 31 Revenue earned during the month included $14,500 cash and $8,000 on account. 31 Paid employees' salaries ($3,200), advertising expense (51,200), and utilities expense (51,100). 31 Declared and paid a cash dividend of $2,000 Jul Accounts Cash Common Shares 22000 22000 Record the payment of monthly rent on July 5th, $1,900. Print Done Journal Entry Date Accounts Debit Credit Jul 5 Rent Expense 1900 Cash 1900

Answer 1

Answer(1) Journal Entry Accounts Debit Credit Date July 1 $22.000 Cash Common Shares $22,000 Journal Entry Accounts Credit Date July 5 Debit $1,900 Rent Expense Cash $1,900 Journal Entry Accounts Credit Date July 9 Debit $39,000 Land Cash Note Payable $8,000 31,000 Journal Entry Accounts Credit Date July 10 Debit $1,000 Supplies Accounts Payable $1,000 Journal Entry Accounts Date Credit Debit $750 July 19 Accounts Payable Cash $750 Journal Entry Accounts Credit Date July 22 Debit $18,500 Cash Note Payable $18,500 Journal Entry Accounts Credit Date July 31 Debit $14.500 Cash Accounts Receivable Service Revenue 8,000 $22,500 Journal Entry Accounts Credit Date July 31 Salaries Expense Advertising Expense Utilities Expense Cash Debit $3,200 1,200 1,100 $5,500 Journal Entry Accounts Credit Date July 31 Debit $2,000 Dividends Cash $2,000

Answer(2) Cash $22,000 18,500 14,500 $1,900 8,000 750 5,500 2,000 $36,850 Accounts Payable $750 $1,000 $250 Notes Payable $31,000 18,500 $49,500 Answer(3) The Company has a Cash Balance of $55,000 - $18,150 $36,850 The Company owes total liabilities of $250 + $49,500 $49,750