Problem

Posting, balancing T-accounts, and preparing a trial balance [10-15 min]Use the January tr...

Posting, balancing T-accounts, and preparing a trial balance [10-15 min]

Use the January transaction data for Ned Brown, M.D., P.C., given in Short Exercise

Requirements

1. Open the following T-accounts: Cash, Accounts receivable, Medical supplies, Accounts payable, Common stock, Service revenue, and Rent expense.


2. After making the journal entries in Short Exercise post to the T-accounts. No dates or posting references are required. Compute the balance of each account, and denote it as Bal.


3. Prepare the trial balance, complete with a proper heading, at January 3, 2012.

Journalizing transactions [10 min]

Ned Brown opened a medical practice in San Diego, California.

Jan 1

The business received $29,000 cash and issued common stock.

2

Purchased medical supplies on account, $14,000.

2

Paid monthly office rent of $2,600.

3

Recorded $8,000 revenue for service rendered to patients on account.

Requirement

1. Record the preceding transactions in the journal of Ned Brown, M.D., P.C. Include an explanation with each entry.

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