Problems Group A P2-29A Journalizing transactions, posting journal entries to T-accounts

Problems Group A

P2-29A Journalizing transactions, posting journal entries to T-accounts, and

preparing a trial balance

Vernon Yung practices medicine under the business title Vernon Yung, M.D.

During July, the medical practice completed the following transactions:

Jul. 1 Yung contributed $68,000 cash to the business in exchange for capital.

5 Paid monthly rent on medical equipment, $560.

9 Paid $16,000 cash to purchase land to be used in operations.

10 Purchased office supplies on account, $1,600.

19 Borrowed $23,000 from the bank for business use. Yung signed a note

payable to the bank in the name of the business.

22 Paid $1,300 on account.

28 The business received a bill for advertising in the daily newspaper to be paid

in August, $240.

31 Revenues earned during the month included $6,500 cash and $5,800 on

account.

31 Paid employees’ salaries $2,500, office rent $1,000, and utilities, $400.

Record as a compound entry.

31 The business received $1,140 for medical screening services to be performed

next month.

31 Yung withdrew cash of $7,000.

The business uses the following accounts: Cash; Accounts Receivable; Office Supplies;

Land; Accounts Payable; Advertising Payable; Unearned Revenue; Notes Payable;

Yung, Capital; Yung, Withdrawals; Service Revenue; Salaries Expense; Rent Expense;

Utilities Expense; and Advertising Expense.

Requirements

1. Journalize each transaction. Explanations are not required.

2. Post the journal entries to the T-accounts, using transaction dates as posting references

in the ledger accounts. Label the balance of each account Bal.

3. Prepare the trial balance of Vernon Yung, M.D. as of July 31, 2015.

Learning Objectives 3, 4

2. Cash Balance $69,880

Use the following spreadsheets for homework

Date
1-Jul

5

9

10

19

22

28

31

31

31

31

Accounts and Explanation

Debit

Credit

Available accounts for journal entries:

Cash
Yung, Capital
Rent Expense
Cash
Land
Cash
Office Supplies
Accounts Payable
Cash
Notes Payable
Accounts Payable
Cash
Advertising Expense
Advertising Payable
Cash
Accounts Receivable
Service Revenue
Salaries Expense
Rent Expense
Utilities Expense
Cash
Cash
Unearned Revenue
Yung, Withdrawals
Cash

Cash
Jul. 1
Jul. 19
Jul. 31
Jul. 31

Jul. 5
Jul. 9
Jul. 22
Jul. 31
Jul. 31

Jul. 22

Accounts Payable

Service Revenue
Jul. 10
Bal.

Jul. 31
Bal.

Advertising Payable

Salaries Expense
Jul. 28
Bal.

Bal.

Accounts Receivable

Jul. 31
Bal.

Unearned Revenue

Jul. 31
Bal.

Rent Expense
Jul. 31
Bal.

Office Supplies

Jul. 5
Jul. 31
Bal.

Notes Payable

Jul. 10
Bal.

Jul. 19
Bal.

Land

Utilities Expense
Jul. 31
Bal.

Yung, Capital

Jul. 9
Bal.

Jul. 1
Bal.

Jul. 31
Bal.

Yung, Withdrawals

Advertising Expense
Jul. 28
Bal.

VERNON YUNG, MD
Trial Balance
July 31, 2015
Account Title

Balance
Debit

Cash
Accounts Receivable
Office Supplies
Land
Accounts Payable
Advertising Payable
Unearned Revenue
Notes Payable
Yung, Capital
Yung, Withdrawals
Service Revenue
Salaries Expense
Rent Expense
Utilities Expense
Advertising Expense
Total

Credit