Question

J. Thompson, M.D., has been practicing a cardiologist for three years. During November 2019, Thompson completed the following transactions in his practice of cardiology:

Nov.  1.      Paid office rent for April, $400.

3.      Purchase equipment on account, $1,050.

5.      Received cash on account from patients, $1,575.

8.      Purchased X-ray film and other supplies on account, $122.50.

9.      One of the items of equipment purchased on November 3rd was defective. It was returned with the permission of the supplier, who agreed to reduce the account for the amount charged for the item, $162.50.

12.    Paid cash to creditors on account, $625.

17.    Paid cash for renewal of a six-month property insurance policy, $185.

20.    Discovered that the balances of the cash account and the accounts payable account as of November 1st were overstated by $100. A payment of that amount to a creditor in October has not been recorded. Journalize the $100 payment as of November 20th.

24.    Paid cash for laboratory analysis, $272.50.

27.    Dr. Thompson withdrew $625 for personal use.

Answer 1

Journal Entries
Date	Account Titles and Explanation	Debit	Credit
Nov. 1	Rent Expense	$400
	Cash		$400
	(To record the payment of rent expense)
Nov. 3	Equipment	$1,050
	Accounts Payable		$1,050
	(To record the purchase of equipment)
Nov. 5	Cash	$1,575
	Fees Earned		$1,575
	(To record the services provided for cash)
Nov. 8	Supplies	$122.50
	Accounts Payable		$122.50
	(To record the purchase of supplies on account)
Nov. 9	Accounts Payable	$162.50
	Equipment		$162.50
	(To record return of one of the parts of the equipment)
Nov. 12	Accounts Payable	$625
	Cash		$625
	(To record the payment of accounts payable)
Nov. 17	Prepaid Insurance	$185
	Cash		$185
	(To record the prepayment of insurance for 6 months)
Nov. 20	Accounts Payable	$100
	Cash		$100
	(To record the payment of account that was missed to record)
Nov. 24	Laboratory Expenses	$272.50
	Cash		$272.50
	(To record the payment of laboratory expenses)
Nov. 27	Drawings	$625
	Cash		$625
	(To record the withdrawal of cash for personal use)