Here are the transactions of Rock Medical Company (a service company organized a

Question

Here are the transactions of Rock Medical Company (a service company organized as a corporation), for the month of March. Record the following transactions for Rock Medical Company. Mar 1 Jim Rock invests $50,000 cash in exchange for common stock in Rock Medical Company. 1 Takes out a $5,000, 30-day short term note payable with an annual interest rate of 6%. 1 Purchases medical equipment on account from JK Enterprises for $22,800. 3 Pays rent for office space, $1,500 for the month. 3 Employs a receptionist, Michelle Kwin. 4 Purchases medical supplies for cash, $1,165. 10 Receives cash of $850 from patients for services performed. 15 Bills patients $11,560 for services performed. 21 Pays JK Enterprises on account, $7,600. 26 Receives $2,600 from patients on account. 30 Bills patients $6,890 for services performed. 31 Pays the following expenses in cash: Salaries and wages $2,500; miscellaneous office expenses $910. 31 Pays principal and interest on the note payable. 31 Medical supplies used during the month, $695. 31 Record depreciation expense on the equipment using the straight line method; the equipment has a 5-year life and no salvage value. 31 Record utility expense of $200 incurred for the month; bill not paid at month end Chart of Accounts: Cash Accounts Receivable Supplies Equipment Accumulated Depreciation—Equipment Accounts Payable Notes Payable (short term) Common Stock Note Payable Service Revenue Rent Expense Office Expense Salaries and Wages Expense Supplies Expense Depreciation Expense Interest Expense Utility Expense Income Summary Instructions

(e) Prepare closing entries and enter the transactions in the T-accounts (from part (b); journal entries can be handwritten or typed in Word/Excel; put on a separate page(s).

(f) Prepare a post-closing trial balance in EXCEL; use formulas to total the debits and credit

NEED HELP WITH "E" and "F"

Explanation / Answer

Answer

(b)

(e)

(f)

Answer a. Journal Entry Date Particulars Dr. Amt. Cr. Amt. 1-Mar Cash    50,000.00 Common Stock    50,000.00 (record the issue of Common Stock) 1-Mar Cash      5,000.00 Notes Payable (Short Term)      5,000.00 (record the loan taken on short term) 1-Mar Equipment    22,800.00 Accounts Payable    22,800.00 (Record the purchase of Medical Equip.) 3-Mar Rent Expenses      1,500.00 Cash      1,500.00 (record the rent paid) 3-Mar No Journal Entry for employ of receptionist 4-Mar Supplies      1,165.00 Cash      1,165.00 (record the purchase of medical supplies) 10-Mar Cash          850.00 Service Revenue          850.00 (Record the service revenue) 15-Mar Accounts Receivable    11,560.00 Service Revenue    11,560.00 (Record the service revenue) 21-Mar Accounts Payable      7,600.00 Cash      7,600.00 (Record the payment made to JK Entt.) 26-Mar Cash      2,600.00 Accounts Receivable      2,600.00 (record the cash recd from patients) 30-Mar Accounts Receivable      6,890.00 Service Revenue      6,890.00 (Record the service revenue) 31-Mar Notes Payable (Short Term)      5,000.00 Interest Expense            25.00 Cash      5,025.00 (Record the note paid) 31-Mar Supplies Expenses          695.00 Supplies          695.00 (record the supplies used) 31-Mar Depreciation Expense          380.00 Accumulated Depreciation - Equipment          380.00 (Record the dep. Expense). Dep. Exp = $22,800 /5 Years X (1/12) = $380 31-Mar Utility Expenses          200.00 Accounts Payable          200.00 (record the utility expenses)

(b)

Cash Accounts receivable Supplies Date Debit Date Credit Date Debit Date Credit Date Debit Date Credit Mar.1 50000 Mar.3 1500 Mar.15 11560 Mar.26 2600 Mar.4 1165 Mar.31 695 Mar.1 5000 Mar.4 1165 Mar.30 6890 End.Bal. 15850 End.Bal. 470 Mar.10 850 Mar.21 7600 Mar.26 2600 Mar.31 3410 18450 18450 1165 1165 Mar.31 5025 Beg.Bal. 15850 Beg.Bal. 470 End Bal. 39750 58450 58450 Beg.Bal. 39750 Acumulated depreciation - equipment Accounts payable Date Debit Date Credit Date Debit Date Credit End.Bal. 380 Mar.31 380 Mar.21 7600 Mar.1 22800 End Bal. 15400 Mar.31 200 Equipment 380 380 Date Debit Date Credit Beg.Bal. 380 23000 23000 Mar.1 22800 End.Bal. 22800 Beg.Bal. 15400 22800 22800 Common stock Note payable Beg.Bal. 22800 Date Debit Date Credit Date Debit Date Credit End.Bal. 50000 Mar.1 50000 Note payable (short term) 50000 50000 Date Debit Date Credit Beg.Bal. 50000 Office expense Mar.31 5000 Mar.1 5000 Date Debit Date Credit 5000 5000 Mar.31 910 Mar.31 910 0 Service revenue Date Debit Date Credit Rent expense Depreciation expense Mar.10 850 Date Debit Date Credit Date Debit Date Credit Mar.15 11560 Mar.3 1500 Mar.31 Mar.31 380 Mar.31 Mar.30 6890 1500 0 380 0 0 19300 Salaries and wages expense Supplies expense Interest expense Date Debit Date Credit Date Debit Date Credit Date Debit Date Credit Mar.31 2500 Mar.31 Mar.31 695 Mar.31 Mar.31 25 Mar.31 Utility expense Income summary Date Debit Date Credit Date Debit Date Credit Mar.31 200 Mar.31
Answer c. Trial Balance Accounts Title Debits Credits Cash      43,160.00 Accounts Receivable      15,850.00 Supplies            470.00 Equipment      22,800.00 Accumulated Depreciation - Equipment            380.00 Common Stock      50,000.00 Notes Payable (Short Term)                     -   Accounts Payable      15,400.00 Service Revenue      19,300.00 Rent Expense        1,500.00 Interest Expense              25.00 Supllies Expense            695.00 Depreciation Expense            380.00 Utility Expense            200.00 Total      85,080.00      85,080.00

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