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Journalizing transactions, posting journal entries to T-accounts, and preparing

ID: 2379266 • Letter: J

Question

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

Explanation / Answer

Revenue

Date ACCOUNT DEBIT CREDIT Jul 1 Cash $68000 Capital $68000 5 Rent Expenses 560 Cash 560 9 Land 16000 Cash 16000 10 Office Supplies 1600 Accounts Payable 1600 19 Cash 23000 Notes Payable 23000 22 Accounts Payable 1300 Cash 1300 28 Advertising Expense 240 Accounts Payable 240 31 Cash 6500 Account Receivable 5800

Revenue

12300 Salaries Expense 2500 Rent Expense 1000 Utilities Expense 400 Cash 3900 Cash 1140 Unearned Revenue 1140 Withdrawals 7000 Cash 7000