Question

Dr. Anna Grayson opened a medical practice specializing in physical therapy. During the first month of operation (January), the business, titled Dr. Anna Grayson, Professional Corporation (P.C.), experienced the following events: (Click the icon to view the events.) (Click the icon to view the journal entries.) Read the requirements Requirement 1. Post the entries to the ledger, using T-accounts. Key transactions by date. Determine the ending balance in each account. (Record transactions from the 15-31 of the month as occurring on the last day of the month.) Calculate the balance for each account and enter it on the appropriate side of each T-account. Service Revenue Accounts Pavable Cash Reference Journal Entry Date Accounts and Explanations Debit Credit 6 Cash Jan 143,000 Salary Expense Accounts Receivable Note Payable 143,000 Common Stock Issued stock to owner. 9 Land Jan 56,000 Cash 56,000 Purchased land. Common Stock Medical Supplies Rent Expense 12 Medical Supplies Jan 2,300 2,300 Accounts Payable Purchased supplies on account. Jan 15 No entry required Jan 31 (a) Cash 4,300 Utilities Expense Land Accounts Receivable 4,300 Service Revenue 8,600 Performed service for cash and on account. 3,200 Jan 31 (b) Salary Expense Rent Expense 1,200 Utilities Expense 900 More Info Cash 5,300 Paid expenses. Jan 31 (c) Cash 600 Jan 6 Grayson invested $143,000 in the business, which in turn issued its common stock to her. 9 The business paid cash for land costing $56,000. Grayson plans to build an office building on the land. The business purchased medical supplies for $2,300 on account. 15 Dr. Anna Grayson, P.C., officially opened for business. During the rest of the month, Grayson treated patients and earned service revenue of $8,600, receiving cash for half the revenue earned. The business paid cash expenses: employee salaries, $3,200; office rent, $1,200; utilities, $900. The business sold medical supplies to another physician for cost of $600 and received cash. Medical Supplies 600 Sold supplies. 30.000 Jan 31 (d) Cash 12 Note Payable 30,000 15-31 Borrowed money. 15-31 31 (e) Accounts Payable Jan 900 Cash 900 31 Paid on account. 31 The business borrowed $30,000, signing a note payable to the bank. The business paid $900 on account. 31 Print Done Print Done

Answer 1

Cash
Common stock	143000	Jan-09	Land	56000
Service Revenue	4300	Jan-31	Salary expense	3200
Medical supplies	600	Jan-31	Rent expense	1200
Note payable	30000	Jan-31	Utilities expense	900
		Jan-31	Accounts payable	900
		Jan-31	Closing balance	115700
	177900			177900
Accounts payable
Cash	900	Jan-12	Medical supplies	2300
Closing balance	1400
	2300			2300
Accounts receivable
Service revenue	4300
		Jan-31	Closing Balance	4300
	4300			4300
Note payable
		Jan-31	Cash	30000
Closing balance	30000
	30000			30000
Medical supplies
Accounts payable	2300	Jan-31	Cash	600
		Jan-31	Closing balance	1700
	2300			2300
Common stock
		Jan-06	Cash	143000
Closing balance	143000
	143000			143000
Service revenue
		Jan-31	Cash	4300
		Jan-31	Accounts Receivable	4300
Income summary account	8600
	8600			8600
Salary expense
Cash	3200
		Jan-31	Income summary account	3200
	3200			3200
Rent expense
Cash	1200
		Jan-31	Income summary account	1200
	1200			1200
Land
Cash	56000
		Jan-31	Closing balance	56000
	56000			56000
utility expense
Cash	900
		Jan-31	Income summary account	900
	900			900