Following is the chart of accounts of Vance Rehab Clinic:
113 Accounts Receivable
117 Prepaid Insurance
221 Accounts Payable
311 J. Vance, Capital
312 J. Vance, Drawing
411 Professional Fees
511 Salary Expense
512 Rent Expense
513 Laboratory Expense
514 Utilities Expense
Vance completed the following transactions during July:
July 1 Bought laboratory equipment on account from Sage Surgical Supply Company, $ 6,520, paying $ 1,520 in cash and placing the remainder on account, Inv. No. 2071, Ck. No. 1930.
3 Paid the office rent for the current month, $ 1,550, Ck. No. 1931.
5 Received cash on account from patients, $ 3,045.
6 Bought supplies on account from Allround Supply, $ 320, Inv. No. 3455.
9 Received and paid the bill for laboratory services, $ 1,484, Ck. No. 1932.
10 Bought insurance for one year, $ 2,600, Ck. No. 1933.
12 Performed rehab services for patients on account, $ 5,185.
14 Performed rehab services for patients for cash, $ 5,050.
18 Part of the equipment purchased on July 1 was found to be broken. Vance returned the damaged part and received a reduction in her bill, $ 410, Inv. No. 2071, Credit Memo No. 218. (Credit Equipment.)
20 Paid the salary of the part- time nurse, $ 2,200, Ck. No. 1934.
22 Received and paid the telephone bill for the month, $ 380, Ck. No. 1935.
24 Performed rehab services for patients on account, $ 4,235.
30 Vance withdrew cash for her personal use, $ 2,000, Ck. No. 1936.
1. Journalize the transactions for July in the general journal, beginning on page 21.
2. Write the name of the owner next to the Capital and Drawing accounts in the general ledger. The balances of the accounts as of June 30 have been recorded in the general ledger in your Working Papers or in CengageNow. Notice the word Balance in the Item column, the check mark in the Post. Ref. column, and the fact that the amount is in the Balance column only. This indicates a balance brought forward from a prior page or month.
3. Post the entries to the general ledger accounts.
4. Prepare a trial balance.